HMRC warns landlords of tax liabilities

Posted: 07 Feb 2007 10:33:21 GMT


            Property News - HMRC warns landlords of tax liabilities

Many recent entrants to the buy-to-let market and homeowners who let a room in their house are unaware of their tax obligations, the government has warned

Many recent entrants to the buy-to-let market and homeowners who let a room in their house are unaware of their tax obligations, the government has warned.

Any rental income you receive, whether it is from a property empire or just a lodger, needs to be declared for tax said HM Revenue & Customs (HMRC).

The agency has set up a special area on its website for landlords to calculate if their earnings are liable for tax.

"The guidelines and advice on the website are not complicated, and information is just a click away," said HMRC's director of risk and intelligence Stuart Hartlib.

"If landlords are self-employed they can download a form online, or call the Self-Employed.

"Landlords should register with HMRC within the first three months of starting up a new business."

The HMRC is beginning a national campaign this week to warn landlords who do not declare rental income that they may be liable under tax-evasion laws.

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