Since January of last year, HMRC has set out to expanding its spot-check regime meaning potential investigations for thousands of landlords and business owners across the country.
The revenue plans to expand the Controversial Business Records Check regime which has a purpose to ensure that businesses have kept sufficient records and that those records back up their tax returns. Business owners that are found to have kept insufficient or inaccurate records could be fined.
Many landlords have had a sense that they are immune to these investigations. In reality, though, landlords are equally at risk. In fact, towards the end of last year the Revenue announced the establishment of a new task force specifically charged with investigating landlords in the North East of England and North Wales. It seems reasonable to expect that these investigations will be extended across the country as part of the Revenue’s continued drive to clamp down on tax evasion.
Ways to protect yourself
- Accurate record-keeping – You’re are legally obliged to keep comprehensive records detailing rental income and related expenditure which must be kept for at least six years following the end of the tax year to which they relate
- Accurate tax return – HMRC has dished out fines for relatively minor infractions.
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