Beware HMRC snooping on landlords!

Beware HMRC snooping on landlords!

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As a tax accountant who also lets out residential property, I was bemused to see a nominal charge on my letting agent's monthly statement entitled 'Inland Revenue Return'. Puzzled as to what on earth this could be, and prepped to let off steam about being charged for something I could easily do myself, I contacted my agent...

It turns out the poor chap received a letter in November from HMRC Cardiff (not his local office) demanding a 'return' within 3 months, under s19 1C TMA 1970, of all payments to UK resident landlords. He had then spent several days compiling this data & the nominal charge per property was his way of recouping some of his costs.

Has anyone else heard of this snooping tactic?

Even more pressure to ensure your clients' SATRs tally with information held by Big Brother!

Burlington Bertie

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By billgilcom
17th Jan 2008 18:42

His compliance costs
Why your letting agent should pass on the costs of his compliance with HIS compliance obligations smacks of opportunism
regards
[email protected]
http://www.wamstaxltd.com

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By AnonymousUser
17th Jan 2008 14:37

I don't understand

Why should you be concerned that HMRC are trying to ensure that private landlords pay tax on their profits?

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By User deleted
17th Jan 2008 12:32

HMRC Information powers
There is nothing unusual about this.

There are a number of powers HMRC hold to request info from third parties about income, capital gains etc. The legislation, TMA 1970 contains information request powers.

It would be naive to consider HMRC would not use their information gathering powers.

I would have thought the cost of complying with the HMRC notice on your agent, would have been an internal cost/overhead for him.

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