Buy to let: the tax crackdown begins

The Revenue is after property investors who don’t declare income. We show how to save thousands legitimately.

THE taxman declared war on amateur landlords last week, sending out hundreds of letters to investors who it thinks are not declaring enough tax on their buy-to-lets. This is just the beginning of what is expected to be a wide-ranging crackdown, with thousands likely to be targeted over the next year.

David Budworth, The Sunday Times - 24th February 2008

Accountants are concerned that landlords who have quite innocently failed to pay the correct tax could be caught up in the campaign and be subjected to prosecutions and fines.

Chas Roy-Chowdhury at the Association of Chartered Certified Accountants said: “Tax rules for renting out property are confusing and it’s easy to make a mistake.”

The first Revenue letters are being targeted at landlords suspected of renting out property without declaring the income. Accountants say many people, especially those who are not charging much rent, may be unaware that the income should be declared even if no tax is due - full article