TaxPersonal TaxWimbledon residents can still beat taxman

Wimbledon residents can still beat taxman

Residents of SW19, who rent out their home or rooms to Wimbledon-mad tennis fans, are again being targeted by the Inland Revenue, but there is still the chance for that perfect passing shot.

Link: Game, set and match to taxman

Homes and rooms are being rented out for £6,000 for the fortnight of tennis action, but mid-tier firm Hacker Young says clever tax planning can counter the threat posed by the Revenue.

Roy Maugham, tax partner, explained: ‘Letting a room to tennis fans can actually be tax efficient as the tax payable would only range from nil to about 10% if landlords were to use rent-a-room relief and only get taxed on the excess over £4,250.

‘If managed properly, the tax payable will be so minimal that it will hardly be worth being a tax dodger at all. Householders who rent out their homes for the duration of the tournament each year and fail to disclose the activity on their tax returns face a tax investigation or even legal action. Even homeowners renting out their drives for car parking could come under scrutiny.

Maugham claimed there had been been reports of undercover taxmen ‘mingling with the crowds to spot tax dodgers’

‘If you are lucky enough to own property in Wimbledon, then get advice before you rent out your home to strangers. You never know, they could be tax inspectors in disguise!’

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