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!’
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy