The Renters Reform Bill is set to change the landscape for landlords with the creation of a landlord database. If a landlord fails to join the database, they will be fined up to £5,000 by their local council.
This property portal will include all the vital details agents, tenants and landlords need to know. This information ranges from legal requirements to rights and the landlord’s history of compliance.
This new database will be publicly accessible and therefore available to HMRC. An increase in the number of landlords pursued for unpaid tax is expected.
The government says that the Property Portal will provide a ‘one stop shop’ for landlords allowing them to access relevant guidance through a single ‘front door’. It explains that: “This will provide the basis for an effective service, helping landlords understand their obligations and demonstrate compliance.”
It also outlines the benefits for tenants: “The Property Portal will increase transparency and the information available before they decide to rent a property and throughout their renting journey.”
Finally, the Property Portal is also expected to help local councils: “The Property Portal will provide a trusted and consistent intelligence source which will remove unnecessary, frustrating administration, meaning council staff will be able to focus on enforcement against criminal landlords.”
Emily Bridges of re:accounts Chartered Accountants explains the impact for landlords: “HMRC already targets the property sector to ensure the correct tax is paid on rental income and property sales.
“The database will show which landlords have handled their tax affairs incorrectly. It’s essential that landlords ensure their tax payments are correct and up to date before registering to join the database. HMRC encourages those who have made mistakes to voluntarily correct their position.”
Further plans are in place to extend the transparency of property ownership and transactions. Now is the time for landlords to ensure they are financially compliant with UK tax laws. Early, proactive steps can also help reduce any late payment interest and penalties due.
Get ahead of the Renters Reform Bill
The Renters Reform Bill is completing its journey to become an Act of Parliament. It is currently waiting for Royal Assent. The government plans to introduce the Property Portal as soon as possible after this final approval.
Are you a UK property landlord? This Bill affects you!
Talk to the friendly experts at re:accounts. Our favourite job is saving money for our clients by reducing their tax liability. We’ll ensure your letting business is fully compliant and tax efficient. Let’s have a coffee and explore the options.
