Is everything above board with your finances?
Landlords across the UK have been warned that they will come under the beady eye of Her Majesty’s Revenue and Custom (HMRC) officials as the Government look to find extra cash from an industry that is currently booming.
Task Force set out for Wild West!
The Government announced several months ago that they were employing hundreds more tax inspectors to cut down on tax dodgers and it appears that property investors with an interest in letting multiple properties are in the firing line as the buy-to-let sector is one of the first targets.
Unfortunately for landlords in the North West and Wales they will be the first region to come under the microscope. HMRC have set up a “task force” to concentrate on the property sector but say, honest businessmen have nothing to fear.
Accountants can help
Many landlords of course utilise accountancy firms to make sure their businesses stay on the right side of the law and it is clearly a good strategy in an industry where monetary dealings can be complicated. Landlords deal with mortgages, rents, loans and property insurance fees on a daily basis and it is very easy to let things slide when another business based problem crops up.
Health and Safety issues, non payment of rent, tenant checks, dealing with agents and the procedures surrounding tenant deposits are time consuming and can easily distract landlords from scrupulous bookkeeping.
Landlord groups such as the National Association of Landlords and the Residential Landlords Association can put landlords in touch with accountants who have an understanding of the sector and in the long run can save investors, time money and worry.
Allied industries also targeted
The HMRC have confirmed the task force will concentrate on landlords with three properties or more and self employed construction workers in the same area, who often work with private landlords, will also find themselves under scrutiny. The tax men insist the buy-to-let sector is just one of many industries that will be investigated over the next 24 months in a bid to bring in extra revenue of up to £7 billion.