HMRC taskforces target buy to let landlords
A new taskforce to combat tax evasion by landlords was announced today by HM Revenue & Customs (HMRC).
The taskforce will target tax evasion amongst landlords who own and/or rent more than three properties, focusing on North West England and North Wales.
A taskforce has also been set-up to target self-employed builders who suppress sales or over-claim expenses in the same areas of the UK.
Landlords with more than three properties in the North West and North Wales are being targeted
Along with landlords and builders, three other areas are set to be scrutinised by HMRC as part of a drive to tackle tax evasion.
These are the industries and regions that it has pinpointed as having the highest risk of tax evasion and include:
- Scrap metal dealers in Scotland deliberately suppressing their income or inflation expenditure to evade paying tax.
- Taxpayers not submitting their statutory returns across Corporation Tax, Income tax Self-Assessment, PAYE and VAT in the South East.
- Fast food outlets in Scotland.
Taskforces are specialist teams that examine specific high risk trade sectors and locations across the UK.
They were created as a result of the Government’s £900million spending review re-investment to tackle tax evasion, avoidance and fraud from 2011/12, which aims to raise an additional £7billion each year by 2014/15.
The HMRC is planning 12 taskforces in 2011/12, with more to follow in 2012/13.
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