Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

A new unit of tax inspectors has been set up by HM Revenue & Customs to target wealthy people who also have property abroad. The people who will be subjected to the scrutiny of HMRC, have wealth between £2.5 million and £20 million, plus a home overseas.

HMRC are hoping that they will raise half a billion pounds in revenue in the period to 2014. Commodity traders will be the next focus for the unit, believing that some traders withhold details of their income from HMRC. According to a spokesperson for HMRC, evidence was available that proves without a doubt, that some overseas home owners who fall within this bracket are evading tax. He added that a small percentage of the targeted people will have undeclared rental income, and won’t be able to provide documentary evidence of how the purchase was funded.

The unit, which was started in September 2011, will target around 200,000 taxpayers who are mainly 50 percent tax payers. The new unit is based on the triumph of a previous unit which concentrated on people who are “high net worth”, meaning they have more than £20 million. The investigation provided a yield of £85 million in 2009-10, with £151 million forecast for 2010-11.

Although HMRC will require documentation to show how properties abroad were paid for, a spokesperson for HMRC said:

“Those who have been letting out their foreign property and declaring the rents received have nothing to fear, but those who own foreign property which has never been let out should be prepared to prove to HMRC that they have received no income from the property.”

guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

Umbrella Companies for Self-Employed Contractors

When you set up in business as a contractor you might either work as a sole trader or as a limited company….

Read More

Get Ready for Small Business Saturday UK 2022

Small Business Saturday started in the US in 2010, on the first Saturday following Thanksgiving. It aims to encourage shoppers to consider…

Read More

Architects and Tax

Architecture is a highly diverse sector when it comes to tax. It’s partly down to the type of businesses that carry out…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.