The tax man is stepping up the scrutiny of buy to let landlords. Accountancy Age magazine has reported an HMRC statement that it has sent 7,371 so called “intervention letters” to buy-to-let landlords in the last four months. These letters are usually sent by the Hidden Economy team (the Revenue’s “Ghostbusters”). An intervention letter basically asks taxpayers to consider if they have returned all of their income and gains. Usually it means that the taxman is holding strong information to suggest they are not doing so.
What does this mean for me?
It is a mistake to ignore such letters. The taxman at this stage is almost certainly looking to recover tax plus interest and penalties. If the recipient doesn’t co-operate then HMRC may consider criminal prosecution.
The Hidden Economy Teams carry out over 30,000 Tax Investigations and generate about £150 million pounds (tax, interest and penalties) a year from tax evasion. A large number of these are tax investigations of buy to let landlords.
Lynam Tax partners have a vast amount of practical experience in dealing with the Hidden Economy Team and in managing tax investigations and Tax Disclosures and in many cases we have been able to substantially reduce the amounts of tax, interest and penalty being sought by HMRC. If you’re subject to a worrying Tax Enquiry or Inspection or you haven’t declared all your income or gains and need to discuss this with a sympathetic, experienced professional, then:
For a free, private, no obligation consultation, call Paul Lynam today on 0845 643 9997