Landlords reminded of looming tax inspections

News Category: Legal

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Landlords have been reminded of the government's plan to crack down on those who are paying insufficient tax.

Under the drive, inspectors from HM Revenue & Customs have been given new powers to pay visits to landlords in person as of April.

Landlords have already been notified by letter of the change in the law, with many going to buy to let landlords whom it is feared are not paying enough in tax.

Phil Espin, tax director of accountants Grant Thornton, urged property investors and landlords to be prepared for a visit by ensuring they have relevant documentation of their business affairs readily available.

He told the Times: "It's likely that only the most serious cases will warrant a knock on the door from the taxman, but it signals HMRC's intent to pursue persistent tax evaders.

"Landlords need to be aware that HMRC has new inspection powers for visiting business premises to look at records and these powers are expected to take effect from next April."

The number of so-called accidental landlords has risen as a result of the slowdown in the property market, as would-be sellers opt to rent out their property until conditions improve.

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