HM Revenue and Customs (HMRC) has pledged to clampdown on tax avoidance in the private rental sector (PRS).
It has launched the Let Property campaign in a bid to collect the hundreds of millions of pounds that is estimated to have been unpaid by the sector.
However, a tax specialist has advised the PRS to view this scheme as a “window of opportunity” to get its affairs in order.
Stephen Barratt, private client tax director at James Cowper, stated: “HMRC recognises that there will be instances where individuals have either deliberately not declared rental income on let properties or made an honest mistake.”
However, he did warn that any people who choose to “hide behind the sofa” can expect to face much tougher penalties and even run the risk of criminal prosecution.
Mr Barratt said HMRC is using increasingly sophisticated software, which means the chances of successful avoiding tax are becoming significantly reduced.
At Applegate Lettings we advise all landlords to take tax advice before purchasing any rental property.
Image: Paul Maguire/Shutterstock
Source: www.rman.co.uk
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