In the latest development, HMRC delivered a directive to tenants that they may help with settling their landlords’ tax bills by withholding their rent into tax income (Brennan, 2019). This is a step taken by the taxman in a bid to crackdown on expats. It came after HMRC sent letters informing tenants about collecting information about the properties that overseas landlords own. Hence, a “dual-pronged attack” is being deliberated to improve the Treasury’s hall. This comes about as some of the latest incentives by the government to gather information to improve its tax base. HMRC, hence, is enhancing its capacity to bring in dues that landlords owe to Britain. It also comes as a first attempt of involving tenants and landlords in property taxation.
The letters were sent to tenants living in houses or properties owned by overseas firms that they may be required to give some of the rent to HMRC in a bid to help in settling the tax affairs of the landlords. In this decree, tenants are requested to provide the taxman with personal information, including contact details, the period of staying in the property and the amount paid as rent. The letter equally came with a warning that providing mismatching information could attract a penalty fine. This has been meted by opposition from experts, with some saying that it is a form of taxman aggression and depressing to the tenants. Also, landlords spending more than 6 months in the UK are liable to HMRC even for their overseas income.
Landlords and homeowners do not need to worry about the shocks from this, they could work closely with accountants to keep their records in order. There are Insurance protections for any unforeseen problems. The best services from this firm are tailored towards guaranteeing the homeowners peace of mind, which includes other products like home emergency insurance offered by Prominence Support. Hence, in case the tenants are affected, this insurance cover will cater for such emergencies. Prominence Support Insurance provides expert cover, does not charge excess fees and does not put limitations on the number of insurance claims per year. There could also be a need for Appliance Insurance, more so for furnished apartments. It could be costly to replace when they break.