MPs ponder tax amnesty for buy-to-let landlords

A group of MPs are looking at legislation which would offer buy-to-let landlords the chance to make up for evading some of their taxes by paying in full during an amnesty rather than facing financial penalties or legal action from HM Revenue & Customs (HMRC).

The amnesty period would co-incide with the launch of an information campaign, explaining to buy-to-let landlords, as well as other entrepreneurs or contractors considered 'high-risk' regarding filing inaccurate or incomplete tax returns such as lawyers, doctors and television actors, why paying taxes are crucial and the consequences they face if they fail to submit a complete dossier, the Residential Landlords Association News Service reports.

The Parliamentary Public Accounts Committee's latest findings on the cash economy, which revealed two million Britons have at least partially evaded tax over the past year, have prompted calls from some MPs for stiffer fines and legal penalties for those who are caught having filed incomplete tax papers.

RLA notes the issue is particularly pressing for government officials, because most buy-to-let landlords who have evaded taxation have not been caught before and the financial penalties for those who are caught are generally minor.

Further reading:

HMRC plans most far-reaching clampdown