Landlords who rent out residential property in Newport are being warned to put their house in order as they are targeted by HM Revenue and Customs in a bid to recover the £500m it believes is being underpaid each year in the sector.
John Thomas, who runs TaxAssist Accountants in Newport, said: “HMRC has begun writing to letting agents, demanding details of rents collected on behalf of landlords for the tax year ended April 5, 2013.
“Some Newport landlords may not even realise that they are landlords, or that tax may be due, but that won’t stop them facing hefty fines or even criminal prosecution. If they come forward now under the Let Property Campaign, they will get the best possible terms to settle any tax and interest owed. If they don’t, HMRC will come down hard. It is vital local landlords grasp this lifeline to get their own house in order.”
The campaign applies to all residential property landlords, including those with just a single rental, student or holiday letting.
According to the Council of Mortgage Lenders there are now 1.57 million buy-to-let mortgages in the UK, an increase of 120,000 in the past year. HMRC estimates that landlords in residential property could be underpaying up to £500m in UK tax every year.
TaxAssist Accountants Newport is a local business, operating across the region, providing tax and accountancy advice and services purely to small businesses.
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