Media reports on HMRC approach to landlords

Many of you will have seen recent media coverage relating to HMRC and it’s approach to landlords and you may be receiving queries from your clients about this.

By way of background, HMRC is not planning a tax crackdown in the way implied in the media reports. HMRC is planning to take a concerted approach to helping landlords of all descriptions (not just in the buy to let market) to understand and comply with their tax obligations in what they recognise to be a complex area. In taking this approach the explicit presumption will be that the majority of landlords want to make a correct return but that many may need some help to understand exactly how to do so. The approach, which was outlined to agent representatives in a recent workshop, will focus on giving landlords improved access to guidance and support so that they can understand how to calculate their own tax liabilities and, where there is tax to pay, using the lightest possible touch to ensure that the correct amount is paid.

Landlords can already obtain more detailed guidance to help them understand their own tax position.