Landlords 'must organise tax affairs' - buy to let mortgages

07 October 2008

Those with buy to let mortgages have been warned to get their tax affairs in order as HM Revenue & Customs (HMRC) is planning a crackdown on evasion.

Target Charter Accountants claims that HMRC is gathering information on landlords in preparation for new powers that come into force in April 2009.

Under the new rules, tax officers will be given more authority and can visit rental properties and inspect landlords' paperwork to discover if a source of income is not being declared.

Mark Tuckwell from Target urged landlords to seek advice on the matter.

"It's far better to come forward and volunteer the information than wait for a knock on the door. Where tax is paid late, significant penalties are applied," he remarked.

Another set of new laws that concern buy to let investors came into force earlier this month.

Landlords must now obtain an energy performance certificate for each of their rental properties.