plym77 Posted May 16, 2007 Report Share Posted May 16, 2007 This is an article from AccountingWeb, which I have copied here for your information Regards Sherena -------------------- AccountingWeb News Tax clamp down for buy-to-let landlords Those residential landlords who have not yet signed up with HMRC should act quickly and notify their existence to the tax authorities under the current general “amnesty arrangement”. If they fail to do so, then they may well find that their details have already been advised to HMRC under the Tenancy Deposit Protection regime, which became law over a month ago, and may double up as another method for clamping down on those who fail to declare their UK rental income. Deposits received by landlords after April 6 must be registered with one of three government approved agencies who run the scheme, and additionally the agencies also have to perform money laundering checks on landlords. It is not clear how the information provided by the Deposit Proctection regime will square up under the Data Protection Act, but HMRC will be left with a powerful set of data which will allow them to monitor rents across the UK. John Baldwin, Managing Consultant of CCH Fee Protection says: “Whether the Government intended it or not the new Tenancy Deposit regime provides the HMRC with the perfect tool to pursue tax evading landlords. The “Terms and Conditions” of two of the schemes explicitly state that information given to them by clients will be passed on to regulators such as HMRC “for purposes of fraud and money laundering prevention”. Tax evasion is treated as both fraud and money laundering. The third scheme has informally confirmed that they have already been providing information to the HMRC. HMRC also has the power to order Tenancy Deposit scheme providers to hand over information about clients under the Taxes Management Act 1970." Landlords who fail to register deposits face a fine of three times any deposit given to them with the fine paid to the tenant. Adds John Baldwin: “One way or the other Tenancy Deposit scheme providers will have to hand over all details of both landlords and tenants that register with them to HMRC. They simply have no choice in the matter.” By coincidence HMRC have also been targetting landlords with new "friendly" advice sections on their website. Link to comment Share on other sites More sharing options...
Melboy Posted May 16, 2007 Report Share Posted May 16, 2007 Just really one man's opinion........ and a vested opinion at that. There are ways and means of getting around everything for those who don't abide by the rules of the game. Mobile phone use whilst driving a vehicle comes instantly to mind........let alone being a Landlord evading paying tax on rental income. When the time comes I am seriously thinking about not taking any deposits 'cos they are going to be more trouble than they are worth. I shall see. I had better add to these thoughts that I am registered with the HMRC for tax purposes etc. Mel. Link to comment Share on other sites More sharing options...
plym77 Posted May 16, 2007 Author Report Share Posted May 16, 2007 Indeed, but a valid opinion and I thought I would post here for consideration I guess if someone is the type to avoid paying the tax, they are probably going to avoid the TDS scheme too! Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted May 17, 2007 Report Share Posted May 17, 2007 Yep Big Brother cometh! Also going to screw any voids that some LL have cash payers covering! unless there is no deposit taken! and so the cashless tax rich age comes a step closer! All us professional law abiding LL's wont need to worry about any of this though ! Simon Link to comment Share on other sites More sharing options...
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