Tax warning for buy-to-let landlords Published: 08/10/2008

The tax man is cracking down on buy-to-let landlords and so investors need to ensure their affairs are in order, an expert has warned.

Target Chartered Accountants warned that from next April, tax officers will have new powers to visit landlords' properties and inspect their records.

HM Revenue & Customs has been getting information together on UK landlords and letting agents and will clamp down on those who have evaded paying their taxes – whether knowingly or not.

Mark Tuckwell said there are some common pitfalls that buy-to-let landlords fall into which might put them at risk.

He said some investors who are making a loss often think there is no point declaring the income, but they may actually be liable.

He added: "Others mistakenly believe the taxman will never find out. Now, more than ever, HMRC is making use of the information at its disposal to seek out landlords who are not disclosing income.

"It's far better to come forward and volunteer the information than wait for a knock on the door. Where tax is paid late, significant penalties are applied but there are more generous concessions where information is disclosed voluntarily."

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