Buy-To-Let landlords are being classed as a ‘high risk’ sector that avoids paying their fair share in taxes and, therefore, should be singled out for tougher punishments.
The Telegraph recently reported that The Public Accounts Committee was deeply concerned that respectable professionals like barristers and hospital consultants, were encouraging the black market with their undisclosed activities.
A report said that that the Buy-To-Let landlords, many of who had been remortgaging their main residence to join this previously booming market, were not declaring their income and profits from their property portfolios. This meant that the government was losing out on a significant amount in taxes from landlords.
The amount they are losing out on now will be even greater after the recent interest rate cuts.
MPs recommended that increased effort should be made to track down those landlords who have been evading taxes. They also suggested that an advertisement campaign should be launched offering amnesty to landlords who came forward and made full disclosures, and paid off their debts.
For those who continue to stay in hiding, they should be rewarded with 100% penalties of the amount owed.
Remember, as a landlord it is your responsibility to let HMRC know that you are receiving income from your property rental business. Failure to do so is likely to mean that you are involved in tax evasion.
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