Tax revenue collected from UK buy-to-let (BTL) investors increased by 13 per cent in the last year due to HMRC’s growing scrutiny of the property investment sector. Meanwhile, HMRC is running a campaign aimed at anybody that has failed to declare a property sale who are being encouraged to come clean and HMRC are expected to become more aggressive generally in their pursuit of tax evasion in the property sector.
HMRC are now able to compare Land Registry records with data from letting agents and tax files to spot any discrepancies that may exist. Mark Giddens of UHY Hacker Young said: Buy-to-let investors need to be aware of HMRCs increasing concern about tax evasion by landlords”. As buy-to-let continues to grow, so HMRC are more keen to delve deeper. So anybody that thinks they are below the radar may soon be in for a nasty shock.
For advice on how to effectively structure your tax affairs and in particular how to avoid any of the above issues, contact the tax experts by contacting Blue Silver Wealth.
Half of tenants surveyed in a recent spareroom.co.uk poll have returned to rental property after previously renting alone or with a partner, suggesting that renting alone is no longer a realistic option for many. The research also discovered that the number of older people sharing is on the increase with those aged between 45 and 54 and sharing accommodation also up by around 50%.
Given that the total number of new people looking for flatshares has risen by 31% since 2011, it seems that more UK citizens than ever before are returning to accommodation sharing in a bid to save cash. The average age of a UK person in a flatshare is now 26.9, up from 25.8 in 2005. And in London, the average is even higher.
Significant savings can be made by renting a room in shared accommodation. Renting a one-bed flat in London costs an average of £19,633 per year including bills. A room in a house share including bills costs in most cases less than £8,000. Quite a saving!
The standard of rented accommodation keeps rising as more people enter the market whilst others tend to stay in shared accommodation for a longer. All the more reason to join us here at The House Crowd where we offer an arms-length, high-interest property investment fund.
With buyers returning to the property market at the fastest rate for four years, the UK housing market seems as though it has finally begun the long road to recovery. Government finance initiatives have implemented since the start of the year appear to be one of the triggers according to the latest RICS Residential Market Survey.
With the number of potential buyers growing at the fastest rate since July 2009, growth was seen across the whole of the UK. Initially focused in the South East, the good news has now spread to regions across the country. The West Midlands and the North East saw the largest increases in buyer activity.
House prices rose in the country for the fourth consecutive month and grew at their fastest rate since the market peak of November 2006. Notably, this was not only confined to more affluent parts of the country such as London, but every region saw growth as we enter the end of the summer period.
And it doesn’t stop there. 15% more sellers placed their homes up for sale last month which meant six months of consecutive rises. And enquiries from new potential purchasers rose even more quickly. It would appear to be a good bet that prices across the country will continue to rise and the experts at RISC described the figures as “great news for the property market as it looks like at long last a recovery could be around the corner.”
So now could be the time for you to invest. To do so in a measured and safe way join The House Crowd now.
Buy-to-let landlords are handing over 13% more in tax to HMRC than in the previous tax year.
Buy-to-let investors paid Â£2.02bn in income tax on their rental income in 2010/11, up from Â£1.78bn due to HMRCâ€™s growing scrutiny of property investors.
There are two special task forces looking at private landlordsâ€™ tax affairs, one based in the south-east and the other in Yorkshire.
HMRC is also currently running a campaign under which people who have not declared a property sale (other than their main residence) are urged to come clean. The campaign ends on September 6th.
â€œOnce the deadline has passed, we expect HMRC to become more aggressive in pursuing undeclared rental income as well as property disposals,â€ said Mark Giddens, head of private client services at UHY Hacker Young. â€¨â€¨â€œBuy-to-let investors need to be aware of HMRCâ€™s increasing concern about tax evasion by landlords. Their actions to date show that they are quite capable of matching Land Registry records and data from letting agents with taxpayer files and picking out discrepancies.
â€œAs buy-to-let increases in popularity, there is inevitably more for HMRC to investigate. Some might simply fail to understand what their liabilities are and how to calculate them properly; others might think that they will be below HMRCâ€™s radar.â€