UK property tax problem to come home to roost

October 9, 2008 by Mark Pollak

You know that old phrase ‘in this world nothing is certain but death and taxes’? Well Benjamin Franklin was a wise man, because the UK tax man cometh.

Buy-to-let property investment pros watch out, according to Target Chartered Accountants, from April 2009 the tax man might just be stopping by unannounced for a cup of tea and a thorough inspection of your tax records.

Owners not even safe at home

A crackdown by HM Revenue & Customs is giving tax inspectors the power to visit landlords in their homes. This means that you might soon find yourself opening the door to a grey suited chap, or chapess, who isn’t there for a tour of your new conservatory.

With the real estate market as it is, and many property investors making a loss, declaring income might not be top of the priority list. But the HMRC still wants to know all about you; your in-comings, outgoings, inside leg measurement….

Tax tips for investment property landlords

More importantly, don’t think that Mr HMRC and his tax office crew will never find out if you don’t declare the income. They will. And they’ll make you pay. So Target have a few pointers for landlords who don’t fancy taping up their letter box and boarding up their windows to hide;

Seek advice on what expenses you can claim
Remember that for tax purposes, if nothing else, a ‘loss’ is a good thing
Take out insurance against the cost of an HMRC investigation
Get your tax return professionally prepared and submitted
If you are behind on reporting, now is the time to come forward

So if there’s a knock on your door be warned, it might just be the tax man come to pay a visit. Or the Grim Reaper.

[tags]real estate,real estate investing,property,property investment[/tags]

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Tax tips for investment property landlords

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UK property tax problem to come home to roost

Owners not even safe at home

Tax tips for investment property landlords

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