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HMRC grabs millions in latest clampdown on buy to let
It’s been revealed that a clampdown on the buy to let sector by HM Revenue and Customs has produced millions of pounds of additional tax revenue.
In 2019 HMRC found 11,129 landlords who had underpaid their income tax, or had not paid income tax at all on their rental properties. In 2018 the figure was just 8,704.
The Revenue also reclaimed £44.7m in tax from landlords last year, compared to just £32.8m in 2018.
The figures, obtained by a Freedom of Information request by the Daily Telegraph, are a result of HMRC’s Let Property campaign, introduced in 2013 and scheduled to run for just 18 months but now extended indefinitely.
Landlords are open to HMRC claiming back up to 20 years of undeclared tax on rental income if they are found to have avoided paying the tax deliberately.
For landlords who identify themselves to the Revenue and admit to having made mistakes, up to six years’ tax can be recouped.
In 2013 HMRC estimated that 1.5m landlords may have been underpaying their tax or were paying no tax at all.
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Original Source: Letting Agent Today.
Original Author: Graham Norwood.
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