HMRC tax haul...

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    #1

    HMRC tax haul...

    The Times today reports (but can't find it on their website) that 58,779 landlords including those living overseas pail a totla of |£163m since start of Let property campaign.

    And some 1,500 BTL property owners living outside UK have admittted underpaying tax over past 5 years, 390 in last tax year.

    See also
    https://www.propertywire.com/news/mo...tax-avoidance/
    ...note..
    The penalty for undeclared rental income is up to 100% of the amount of tax HMRC believes is owed.
    I'm sure all decent tax-declaring persons will be pleased with this haul (but could do better).

    The sad tragedy is that there are more staff on benefit fraud than work on tax avoidance, with much lower results from benefit fraud.

    Best wishes to all
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...
    Tags: None
    #2
    Benefit fraud is stealing tax. I thought tax avoidance was fine whereas tax evasion is not.

    Comment

      #3
      Tax avoidance is legal, tax evasion isn't.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment

        #4
        True, although the distinction between the two is not necessarily as clear as people often suggest. I can think of a number of manoeuvres which are usually described in the media as "complex tax avoidance schemes" which involve what are essentially illusory transactions intended to deceive HMRC. To my mind that comes very close to tax evasion.

        Comment

          #5
          As many people have found out, HMRC are able to challenge avoidance schemes which can become evasion if they are successful.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment

            #6
            > The sad tragedy is that there are more staff on benefit fraud than work on tax avoidance, with much lower results from benefit fraud.

            That is a rubbish comparison. I can only assume it came from the likes of the author of Joy of Tax.

            Someone fraudulently claiming benefits, it withdrawing £20,000 per year from Government. Someone now paying their taxes is n't taking money our of the system, but neither are they putting into it.

            The tax system has never been fair. Someone from overseas has been able to buy UK property and sell it on without paying CGT. Not fair on UK citizens who have to pay. I don't know if the CGT have been tightened up....

            Comment

              #7
              I think the comparison is based on £1.5 billion lost in benefits fraud (and nearly 3 times as much lost in "errors") versus HM Revenue and Customs estimates that it lost about £2.7 billion through tax avoidance and £4.4 billion through tax evasion.

              HMRC estimates that about £34 billion in taxes goes uncollected each year - although that's obviously an estimate.

              I know where I'd focus my efforts.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment

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