HMRC target buy-to-let landlords as it launches five specialist teams to combat tax evasion

Published 30th Nov 2011

A new taskforce to combat tax evasion by landlords was announced today by HM Revenue & Customs (HMRC).

The taskforce will target tax evasion amongst landlords who own and/or rent more than three properties, focusing on North West England and North Wales.

Along with landlords and builders, three other areas are set to be scrutinised by HMRC as part of a drive to tackle tax evasion.

Mike Wells, HMRC's director of risk and intelligence, said: 'These taskforces will come down hard and fast on those who have chosen to break the rules and deliberately evade the taxes they should be paying. Honest businesses, however, have absolutely nothing to worry about.

'HMRC is clear – if you deliberately seek to evade tax we can and will track you down and you’ll face not only a heavy fine, but possibly a criminal prosecution as well.'

Taskforces are specialist teams that undertake intensive bursts of compliance activity in specific high risk trade sectors and locations across the UK.

They were created as a result of the Government’s £900million spending review re-investment to tackle tax evasion, avoidance and fraud from 2011/12, which aims to raise an additional £7billion each year by 2014/15.

The HMRC is planning 12 taskforces in 2011/12, with more to follow in 2012/13.

Grant Summers, tax partner at Grant Thornton, said: 'HMRC has been using its information powers and researching industries to identify those that are more likely to harbour tax evaders.

'These taskforces demonstrate HMRC's warning that there is no hiding place for undisclosed income and gains and that it will clamp down very hard on anyone who does not have their affairs in order.

'Failure to do so will run the very serious risk of prosecution when the designated taskforce identifies an anomaly.'

Mike Down, tax investigations partner at Baker Tilly, said: 'This teamwork approach is becoming increasingly widespread and HMRC now seems to be in full flow in coming up with new team-based initiatives.'

Source: ' ThisIsMoney '

View All Latest Articles