Taxman calls for buy-to-let landlords

by Sarah Ashcroft

Buy-to-let landlords need to make sure their tax forms are up to date or they face an embarrassing knock on the door, according to reports.

The government is giving tax officers the power to call on landlords in their own homes if they need to check their tax records.

It is believed the move is designed to crack down on those landlords who are liable to pay extra tax on their buy-to-let income.

Many landlords have incorrectly assumed that they are allowed to claim full repayment amounts on their mortgages against their profits.

Phil Espin, Grant Thornton's tax director of accounts, said: "It's likely that only the most serious cases will warrant a knock on the door from the taxman, but it signals HMRC's intent to pursue persistent tax evaders."

The new powers are expected to take effect from April 2009.

Britain's rental market has grown in recent months, as tenants shy away from buying property in the current economic climate.

Published on: September 25, 2008

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