HMRC will get a tax ‘gold mine’ with the new landlord database

HMRC will get a tax ‘gold mine’ with the new landlord database

0:02 AM, 23rd May 2023, About A year ago 24

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The Renters’ Reform Bill has unveiled a new database that could turn into a tax ‘gold mine’ for HMRC to chase after landlords who haven’t been paying their taxes, one firm warns.

Accountancy and business advisory firm BDO say the new private rented sector database will have a record of all landlords and their properties under residential tenancies – providing HMRC with an easy way to track down unpaid tax.

According to BDO, the Bill doesn’t clearly state that HMRC will have full access to all the information submitted as part of the registration process, unlike the equivalent provisions for the Register of Overseas Entities.

However, landlords should assume that the tax authorities will be utilising the publicly available data for compliance checks.

‘Holds significant information on taxpayers’ financial affairs’

BDO’s head of tax dispute resolution, Dawn Register, said: “HMRC already holds significant information on taxpayers’ financial affairs.

“The introduction of a new private rented sector database will leave few places to hide for landlords who don’t comply.

“Any landlords who don’t currently pay the right amount of tax would be well advised to bring their UK tax affairs up to date before the register is introduced.”

She added: “In addition to providing peace of mind, making an unprompted disclosure should lead to lower tax-geared penalties for errors, compared to rectifying mistakes after HMRC gets in contact.

“It will also help to mitigate late payment interest – which is currently at a 14-year high of 6.75% per annum and due to rise to 7% from 31 May.”

Declaring their rental profits and gains on sale

HMRC is determined to ensure that landlords are paying their dues and declaring their rental profits and gains on sale.

It is encouraging landlords who have tax mistakes to come clean voluntarily by using the Let Property Campaign or other disclosure processes that are part of HMRC’s Digital Disclosure Service.

Landlords also need to be aware, BDO says that more property data will soon become available after the Land Registry implements the new requirements in the Levelling-up and Regeneration Bill.

This means that HMRC can combine any new data from the landlord database with its already extensive database of more than 55 billion pieces of data.


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Pete England - PaTMa Property Management

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20:01 PM, 23rd May 2023, About A year ago

Reply to the comment left by GlanACC at 23/05/2023 - 16:39
Agree. I’m sure the landlords who don’t pay their taxes will also not register on a property database

Smiffy

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20:48 PM, 24th May 2023, About A year ago

HMRC could pull a huge wedge from the likes of Amazon and Starbucks, if the Govt had the balls to change the rules and make them pay UK corporation tax like the rest of us.

Andrew57

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22:22 PM, 24th May 2023, About A year ago

As long as the scheme is funded by fines no problem but I don't see why honest landlords should fund it.

GlanACC

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7:39 AM, 25th May 2023, About A year ago

Reply to the comment left by Andrew57 at 24/05/2023 - 22:22
Not a chance, going to be another £100 a year fee no doubt

Old Mrs Landlord

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8:48 AM, 25th May 2023, About A year ago

Reply to the comment left by Andrew57 at 24/05/2023 - 22:22
The plan is that landlords should fund this portal as was made clear in the committee discussions which took place as the legislation was being planned. Sadly this government seem incapable of grasping the simple fact that the more costs they heap on landlords the more rents will rise. Throughout the population there is a widespread belief that landlords are made of money and intent on exploiting their tenants..

Reluctant Landlord

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8:54 AM, 25th May 2023, About A year ago

Reply to the comment left by Old Mrs Landlord at 25/05/2023 - 08:48
they know they just dont care - its inherent in every level of government/council.

I questioned a LA about SL and how the cost of the licence is going to increase rents . This is the reply I got back .. I shall be using this direct quote when I explain the rent increase to my tenants....

'I am aware that this licensing scheme will cost the property owner more, how they choose to deal with the costs is not my decision or the councils decision to make.'

Badger

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12:49 PM, 27th May 2023, About A year ago

Reply to the comment left by GlanACC at 23/05/2023 - 16:52
Are you suggesting that HMRC have (automated) access to people's phone and TV subscription data, or is this data that they acquire on an individual basis once provoked into quizzing the particular individual of concern?

GlanACC

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13:33 PM, 27th May 2023, About A year ago

Reply to the comment left by Badger at 27/05/2023 - 12:49
Sorry to tell you that when you take out a loan possibly a mobile phone contract or any kind of credit, this information is availble to the credit reference agencies. This can, if allowed by the data protection registrar be used in systems that detect fraud and other such systems. Your voters roll information that you send to the council at the end of the year is sold to these credit reference agencies. HMRC itself also collects data from various sources eg. land registry. it also has access to some of the offshore lists.I read somewhere that HMRC now has over 90 BILLION pieces of information on the UK population.

Badger

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13:37 PM, 27th May 2023, About A year ago

Reply to the comment left by GlanACC at 27/05/2023 - 13:33
"This can, if allowed by the data protection registrar be used in systems that detect fraud and other such systems."

Based on your inside knowledge are you saying that this is what is actually happening - i.e. that HMRC has unfettered access to the entirety of individual credit files as help by the credit reference agencies as a result of a regulation from the DPR allowing this?

GlanACC

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14:53 PM, 27th May 2023, About A year ago

Reply to the comment left by Badger at 27/05/2023 - 13:37NO, there are still many restrictions that prevent HMRC from accesing certain information and from my insider knowledge I do know that the credit reference agencies DO NOT just hand over information unless it has been authorised by regulators. I do know that HMRC gather information from other non credit reference agency sources. Again that does not mean that HMRC will have open access to it, for example just because land registry hold information on properties HMRC would have to justify legitimate use access to it. However, you know as well as I do that discovering fraud is likely to be one of the reasons thay can access various data.

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