HMRC & Further Targetting of Landlords Not Declaring Rental Income

franklee

silvercar wrote: »

I just wonder why the revenue would spend a fortune chasing people to declare their losses. They must have reason to believe that lots of landlords are not declaring profits.

With tracker mortgage rates at near zero surely many landlords are now making profits, the interest they pay having fallen to peanuts.

Jowo_2

tbs624 wrote: »

Any source for the percentage?
.

Originally, the HMRC refused to reveal the percentage of reports to their tax evasion line that led to prosecutions or the money that was recovered (unlike the benefits fraud line where the DWP revealed it saved £21 million from 212,000 tip-offs).

http://www.dailymail.co.uk/news/article-466871/200-000-people-inform-tax-cheating-friends.html

A House of Commons report published later indicated that out of 120,000 tip-offs it received in 2006-07, they planned to investigate 5,500 but only managed 2000, less than 2% by my calculation. It notes that for every thousand cases detected only two are prosecuted compared to DWP which prosecutes 60, hence having a higher deterrent effect.

Perhaps the UK should introduce cash incentives to reward those whose tip-offs provided reliable information? I understand that is done in other countries.

Mini_Bear

like dog the bounty hunter?
I can think of 5 ppl off the top of my head who are renting out houses they cannot sell (weell they could if they dropped the price) and not declaring the rental income to HMRC.
I dont care that the govt get screwed over (they wud only spend the extra income on floating duck houses) BUT these ppl r rubbin it in my face sayin things like "bet u wish u had a BTL" and " the rent we r gettin is payin little jimmys school fees" GRRRRRRRRRRRRRRRRRRRRRRRR!
i cannot wait for stricter landlord rules, i dont think HMRC realise how prevalent this problem is. it will cause another property slump as no1 will want second homes as a pension pot!

clutton_2

franklee says

""With tracker mortgage rates at near zero surely many landlords are now making profits, the interest they pay having fallen to peanuts.""

BTL mortgage rates are nowhere near zero - but you are right that we should be making more profit as tracker mortgage repayments have fallen

however

i have more arrears this last year than ever before - mainly due to HB tenants stealing from me - so i am not in any better position than i was last year..... sadly

franklee

clutton wrote: »

franklee says

""With tracker mortgage rates at near zero surely many landlords are now making profits, the interest they pay having fallen to peanuts.""

BTL mortgage rates are nowhere near zero - but you are right that we should be making more profit as tracker mortgage repayments have fallen

however

i have more arrears this last year than ever before - mainly due to HB tenants stealing from me - so i am not in any better position than i was last year..... sadly

Yes new mortgages taken out now have higher rates but anyone on a tracker has cleaned up, some (was it C&G) tracking below base rate :eek:. Did you read Vanessa's blog thingy, near zero interest rate and a 90K offer to take her mortgage elsewhere, lucky for some.

But you are right the risks have gone up too, tenant being made redundant is becoming more common too I suppose.

clutton_2

this year should have been really great - but with tenant arrears increasing and more voids (as more rental property appears on the market on a daily basis) - my cashflow could be better... but i still have a big majority of good HB and professional tenants who are paying up on time - being a LL is a long term business

i take the rough with the smooth