Developing properties developing lives
Developing Properties, Developing Hope
Why Housing for Vulnerable Young People Needs a Different Kind of Investor
Over…
01.11.2021
Landlords are you up to date with your taxes?
HMRC has actively started to take a greater interest in the rental market, and we have seen an increase in the number of landlords, especially those on a low income who have received tax enquiry notices due to unreported capital gains or rental income.
Owners of property/flats who have taken advantage of the 2020 COVID-boom via AirB&B need to be especially careful. As part of its tax settlement in 2020, AirB&B has agreed to share with HMRC details of income earned by its UK hosts. With some of this income becoming reportable as part of the 2020/21 tax returns (due 31 Jan 2022), it must be reported accurately if you have received income.
HMRC's algorithm will undoubtedly be checking tax returns for the expected bump in rental income. It will easily be able to identify those returns where the income has been potentially under-reported.
With the recent changes to interest deductions and now this expected staycation windfall is due to become taxable. Landlords become an obvious target for HMRC over the next couple of years.
Suppose you are a landlord who has been lucky to receive a benefit from the COVID- staycation. In that case, our advice is to ensure that you know what your obligations are before submitting your self-assessment return.
We have also had several individuals approach us with undisclosed rental income that they have or wish to disclose under HMRC's Let Property Campaign. Our advice is to not rush into such settlements. We have seen many situations where HMRC seeks to maximise tax receipts via penalty and extension of the six-year disclosure window.
If you wish to discuss any of the above or see how we may assist you, please either call us on 01442 97 44 99 or email us at info@hawthorneconsultancy.com.
I started Hawthorne Consultancy Services in 2019 as a way to provide individuals and businesses with affordable tax planning and tax investigation representation.
AI, Agentic AI, Ai adoption, Agentic automation
AI and Automation for single person businesses
I run an AI service business, and most of the people I work with are single-person companies. No teams. No layers. Just…
Outcome, Service as software
Service-as-Software: The Shift From Selling Tools to...
For most of the history of software, one assumption has remained remarkably stable. Software has always been a…
More Articles
AI, Computing, Agentic AI, Technology
Agentic AI: The End of Traditional Automation (and What...
For the past decade, businesses have been told that automation is the key to efficiency.
Automate your emails.…
Call Answering, Reception services
6 Signs You’re Ready for a Virtual Receptionist
Running a small business often means wearing every hat in the company. You’re the owner, the salesperson, the…
Tax, Finance, Tax advice, Corporate Tax
Limited Company or Sole Trader? Weighing It Up
With the increases in dividend tax announced in Budget 2025 last week, should you still be a Limited company?
Here's a…
