24 Apr HMRC are getting smarter, so should landlords!
HMRC launched the “Connect” system to achieve their aim of becoming the leading tax collector in the world. Read on to find out more.
Back in 2017 HMRC launched a system called “Connect” costing millions of pounds of investment. The system is doing what it was designed to do; help put HMRC on the road to becoming the leading tax collector in the world. They are still some way off reaching this target, however.
By cross referencing information, Connect is able to identify landlords not living in a property, particularly where council tax is paid by someone else. Furthermore, a simple comparison of Land Registry and Electoral Register data can be enough to trigger an investigation.
HMRC has collected in excess of £38m of income tax from landlord investigations last year alone. If you are a landlord or know somebody who hasn’t declared their rental income then you should do so now. Voluntary disclosures via the property rental disclosure scheme will result in lower penalties compared to HMRC finding out.
AJN have dealt with many such cases and have experience in reducing penalties as low as possible.
AJN Accountants are specialists in helping contractors, freelancers and small businesses to save tax and time.
Please contact us for more information:
T: 020 3866 8951
Follow AJN Accountants on Twitter for regular updates.