New tax clampdown will hit buy-to-let landlords

by Ed Bowsher on 31 May 2012  |  14 comments
Tweet

The tax man is launching a new tax clampdown that will hit buy-to-let landlords and street market traders.

HM Revenue & Customs (HMRC ) has announced six additional ‘tax forces’ as it attempts to raise the tax take by clamping down on tax evaders.

Each tax force will clamp down on particular business types in geographic areas. Here are the main targets:

-          Indoor and outdoor markets in London

-          Taxi drivers in Yorkshire and Nottingham

-          Restaurants in Birmingham and surrounding areas

-          Buy-to-let landlords in East Anglia, London, Yorkshire and the North East.

This follows clampdowns announced earlier this year on ‘direct selling’ reps and ebay traders amongst other businesses.

Exchequer Secretary, David Gauke, said: “We have made it clear that we will not tolerate tax evasion. Everyone needs to pay the taxes they own in full. We are determined to crack down on the minority who choose to break the rules.”

What you should do

If you’ve not been paying as much tax as you should, you should ‘fess up’ to HMRC. You’ll probably treated more leniently if you make the first move rather than wait for the tax man to find you. You could always get advice from an accountant on the best way to do this.

Of course, the majority of people pay all their tax and may be fed up that others aren’t paying their share. If you fall into that category, you may be interested to know that HMRC runs a ‘Tax Evasion Hotline.’

So if you know someone who you think you may be evading tax, you can ring the hotline on 0800 788 887 or get in touch via the HMRC website.

More:  Thousands owed inheritance tax rebate  |  Why all taxes must rise by 16%!