Tax investigation research by HMRC estimates that nearly one quarter of private landlords are committing tax evasion.
Tax Investigation intelligence data worries errant landlords
According to recent figures, the tax authority estimates that over £500 million is being lost to the exchequer as a direct result of buy to let property owners failing to disclose rental income.
The figures are all the more dramatic when viewed in context – HMRC collected a total £1.8 billion in taxes on rental income during the tax year ended 5th April 2010.
The figures are bound to be causing great consternation within the corridors of HMRC HQ. It is safe to assume that we will see a further intensification of compliance efforts in this area. That will inevitably mean a dramatic increase in the number of tax investigations or compliance checks being launched against those landlords operating in the hidden economy.
Third party information
Income from property is an area where HMRC have access to very solid third party information from sources such as the land registry, the internet and local authorities.
The departments ability to effectively interrogate the information accessed from these sources has never been better. If you have undisclosed income from property you can be reasonably sure that your details are held on file.
The next question to consider, is will HMRC identify you. Given the startling nature of the above leak and the numbers involved the likelihood of this happening increases dramatically.
In such your circumstances your best option will be a full and frank, Voluntary disclosurethrough an experienced tax investigation representative. This approach, which is a very specialised type of tax investigation service will save you time and money.
The Admiral Tax Investigation service is the most comprehensive available anywhere in the UK. If you have a let property that is unknown to HMRC, then you need to act swiftly.
The consequences of continued tax evasion could be grave. If HMRC catch up with you, you could find yourself faced with a drawn out, intrusive and incredibly stressful tax investigation or HMRC compliance check. If your tax evasion is deemed to be serious enough you could become the subject of a criminal investigation.
Tax Investigation Advice
Perhaps you would like some further tax investigation advice, before making an informed decision. We are here to help on 0330 999 5000.