A new billboard campaign has been unveiled by the government which will target tax evaders and avoiders. The new ads, which feature an alert pair of eyes peering through a hole in a wall/paper background, bear the slogan: “we’re closing in on undeclared income”.
The billboards have been created by M&C Saatchi, and are part of a wider £917m campaign that will target those engaged in tax evasion and avoidance. While the drive will cost the best part of £1 billion, it aims to raise tax receipts by £7 billion each year by 2014/15.
For those among our landlord or buying let property insurance customers who are new to the rental industry, the campaign serves as a reminder to pay attention to tax guidelines.
You should tell HMRC that you are renting a property out, or you may face a fine.
Additionally, remember that when calculating your profits, you cannot deduct the cost of certain outgoings, such as:
• buying the property
• improving the property
• depreciation of the property’s value
• losses when you sell the property
You can however claim allowances against things such as:
• fixtures and fittings (eg, plumbing, storage units, electrical installations)
• equipment for the day-to-day running of your business (eg a computer)
• equipment required not just for one property, but for two or more (eg an updated fire alarm system for a block of apartments
More information about your tax obligations can be found at: https://www.gov.uk/renting-out-a-property/paying-tax