It has been reported that buy-to-let investors who fail to declare their income are to become a key target of HM Revenue and Customs investigations.
In the year 2012-2013, there were 617 tax evasions prosecutions which is double that of the previous year.
David Nicholson, Director of Martin & Co Crawley said “For new or part time landlords it can be quite easy for them to put their buy-to-let properties to the back of their mind and focus on their day job, with the current low mortgage rates, many landlords are generating higher profits than in previous years. A thing to remember is unless these profits are re-invested back into the rental property they can incur significant tax liabilities”.
At Martin & Co Crawley we get asked many tax related questions through the year and although we have a basic understanding we are not tax experts. Some of our landlords are using Bourne Accountancy to prepare and file their tax returns. You can access the dedicated landlords section of their website.