Landlords, have you paid your tax?
Tax clampdown Planned in New Year
It’s been reported by Accountancy firm UHY Hacker Young that HMRC will be planning a New Year Clampdown on Tax for Landlords that have taken advantage of the holiday market boom. If you let out holiday properties or have switched to Airbnb or similar platforms, tax inspectors may be coming for you.
It is the owners responsibility to declare income for these Let’s and if using a holiday platform such as Airbnb then your declared income may be cross checked with there bookings.
If you haven’t submitted/declared any income where applicable then I highly recommend to speak to an accountant to assist on filing and the process as fines may be applicable if deadlines are missed.
Chauhan adds: “With the boom in staycations driven by the pandemic, leading to a bumper season for UK holiday lets, it’s likely HMRC will come for their slice of the pie. HMRC will be checking tax returns from people who have let property for a jump in declared income to reflect the staycation boom. Their algorithms will fairly easily identify those holiday homeowners who they think are under-declaring income.
“As HMRC’s Let Property Campaign targeting buy to let landlords shows, the Treasury sees landlords as an obvious target for tax investigations and extra tax revenue. Landlords are recommended to make sure they are aware of their tax obligations before spending their summer ‘staycation’ windfall. Landlords who fail to declare unpaid taxes are ultimately risking fines and criminal prosecution.”