Renters Reform Bill
As part of the new Renters Reform Bill the Government is planning to launch a new landlord database. This database has the potential to provide HMRC with large amounts of information regarding landlords which they will be able to identify landlords who have not properly declared rental income and gains.
When the new private rented sector database is introduced, landlords that want to rent out properties in the private sector will be required to register to the database. Although HMRC have not said they will use this data for compliance activities it is assumed that they will considering the database will be publicly accessible. Furthermore, they will be able to combine this data from the private rented sector database with data they already have. This will shine the light even brighter on those landlords that do not currently comply with tax rules.
Landlords should check taxes are in order
With the new Renters Reform Bill on the horizon we would certainty recommend that landlords who have any concerns should review their tax affairs and take steps to bring them up to date. Declaring any mistakes and correcting your tax position voluntarily will result in lower penalties compared to being identified by HMRC. For those that wish to voluntarily correct mistakes they can do so via the Let Property Campaign.
If you are a landlord and are unsure regarding your tax position with HMRC we would certainty recommend reviewing your position. If you are unsure speak to our tax advisors who will be able to assist you to check your tax position and guide you through the process of correcting your tax position voluntarily.
How can we help?
Hawsons has a dedicated team of specialist property and construction accountants. Having an accountant who understands the challenges of this dynamic sector and is able to help you plan for the future is an advantage in a competitive environment. At Hawsons we have a great deal of experience in advising and helping businesses in property and construction and we can assist you as your business grows.
Our in-house tax team has advised in many aspects of taxation specific to the property investor including in the areas of VAT, Capital Allowances, Income Tax, and Corporation Tax and Capital Taxes.
Stephen Charles
Tax Partner, Sheffield
Free initial meeting
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