20th
Jul 2023
A leading accountant is sending out a warning to all private landlords that the incoming Renters Reform Bill likely to become law by early next year at the latest, will make sure HMRC maximises buy-to-let investors’ tax revenues.
The accountant, Aatif Malik, says the measure included in the Bill is the introduction of an online private rental portal that will : “significantly reshape the landscape of tax on rental income, profoundly impacting resident and non-resident landlords and investors.”
The government is proposing that the online portal will be launched in Autumn 2025 reliant upon the Bill being granted Royal Assent early 2024.
He says the Property Portal intends to reduce the amount of red tape so landlords, renters and councils will have in effect a one-stop shop to communicate and resolve issues between all parties.
With the incoming Renters Reform Act it will be mandatory for all PRS landlords to register themselves and properties on the Property Portal and must follow its terms and conditions or face considerable fines.
He says: “Repeated breaches or serious offences may prompt an investigation by the Fraud Investigation Service, a specialised division within HMRC that deals with cases where the loss to the exchequer exceeds £100,000.”
Malik describes the Bill as “a clarion call for landlords to ensure their financial and tax affairs are fully compliant. Waiting for a nudge letter from HMRC under the Property Let Campaign or Undisclosed Income could lead to penalties, affecting cash flow in an already economically precarious environment."
The Bill also includes the measure that selective licensing will continue in the sector and calls for new areas to fall under the licensing remit which will be featured on the portal.
The accountant advises those landlords who have not yet declared rental income and to those that fail to comply with licensing requirements must do so quickly as he says: "Preparation is the best defence. The current climate's economic challenges mean landlords must understand and fully meet their obligations under the new reforms.”
News Archive »