If you are one of the many owners of rental property here on the Fylde Coast, you need to make sure that all your affairs are up to date with respect to filing returns regarding your rental income – whether you own one house or 100, made a profit or not.
Jones Harris Chartered Accountants warn that HM Revenue and Customs are establishing new taskforces to target the property sector with a particular emphasis on landlords, and that the resulting liability from offering to make your own declaration will be far less than if the Revenue review your books through an investigation which they instigate.
There are many reasons why people come into ownership of a rental property, including a couple renting out one of their houses from a previously single life, inheriting from family members and of course the increase over recent years of people purchasing property as an income stream for the present day or to fund a retirement package – as three in ten of the current owners of rental property intend.
Andy Liddle, from the Tax Technical Team at the Fleetwood based firm of Chartered Accountants explains that sometimes people are naive and just don’t realise that they have to declare this income stream. “If someone has always been an employee on Pay as You Earn tax, never had any business experience or contact with an accountant and then acquires a house which they go on to rent out, it’s very possible that they just won’t know that they have to declare this income”.
Across the board HM Revenue and Customs are increasingly driven to collect unpaid liabilities and the rental market presents an easy target for them to pursue. Using housing benefit records, stamp duty notification and various other methods at their disposal, they can relatively easily find out who owns rental property and whether or not they are making the necessary returns. Plus, of course, if there are significant liabilities to meet at the end of an investigation you are in possession of a recoverable asset which could meet the amount required, even if you don’t have enough liquid cash to pay the bill.
Andy added “Getting your house in order might not be as big a problem as you think it is, and here at Jones Harris we can advise you about claims for allowable expenses that you wouldn’t have thought of, and with our specialist expertise we can often significantly reduce the penalty that you actually pay against that which you would have paid if you had been investigated. The crucial thing is that we can save you a significant amount of money, and bring your tax obligations up to date.”
If you need any help with your own rental portfolio, even if it’s just one property, you can talk to Jones Harris in confidence, and find their contact details at the link below.
Jones Harris Chartered Accountants, Fleetwood
Landlords targetted by HMRC, warn Jones Harris Chartered Accountants
Andy Liddle, Tax Specialist at Jones Harris Chartered Accountants