Over the past year as many as one million private landlords did not declare any revenue, new research has revealed. According
Over the past year as many as one million private landlords did not declare any revenue, new research has revealed.
According to the Metro, this equates to a third of all landlords who are not paying any tax on their income which amounts to £550 million per year.
The taxpayer is losing out by over half a billion pounds annually and HMRC has suggested it will be investigating the matter further.
Yet it claims most landlords are compliant with the rules: “The majority of buy-to-let landlords pay what the law requires and evasion is far from endemic. Almost £1billion has been made available to tackle evasion and avoidance. Tax evasion is now very high risk.”
The news follows a call from landlords ahead of the Budget who are encouraging George Osborne to introduce new tax relief measures.
Private landlords are currently under added pressure as controversial Government plans for a ‘bedroom tax’ could lead to both higher costs, reduced housing allowances and, in the long term, less opportunity for renters.
The Department for Work and Pensions has calculated 660,000 households across Britain will be affected by the policy, with an average reduction of £728 per year.
