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The proposed landlord database will be a ‘golden trove’ of information for tax inspectors, so investors should ensure their finances are up-to-date before the database arrives.
Dawn Register, head of tax dispute resolution at accounting firm BDO, said.
The Lessor Reform Bill does not explicitly provide that HMRC has full access to all information submitted as part of the registration process, unlike the equivalent provisions for registration of foreign entities.
However, the BDO said it was reasonable to assume that tax authorities would use publicly accessible data for compliance activities.
Dawn Register, BDO’s Head of Tax Dispute Resolution, said: “HMRC already holds important information about taxpayers’ financial status.
“Landlords who are not currently paying the proper amount of tax are advised to bring their UK tax practices up to date before the register is introduced.
“In addition to providing reassurance, immediate disclosure should lead to a reduction in tax penalties for errors compared to correcting them after HMRC has contacted them. It also helps reduce the interest rate, which is currently at 6.75% per annum, the highest in 14 years, and will be increased to 7% from May 31.”
HMRC encourages those who have made a mistake to voluntarily correct their position using the Let Property campaign, part of HMRC’s Digital Disclosure Services, or any other disclosure process. increase.
Further property data will also be available after the Land Registry introduces new information requirements for the Equalization and Rehabilitation Bill. It also aims to increase the transparency of property ownership and transactions.
HMRC will integrate the new data from its landlord database into land registry records, overseas corporate registries that own UK property, and into HMRC’s own Connect database, which is said to hold more than 55 billion records. Join with data that you already have access to, such as data. .
Data analysis should help HMRC identify cases for investigation with a view to claiming taxes, late payment interest and tax penalties.