Friday, 7 January 2011

Private Landlords evade £49.7million in taxation

Figures from HMRC reveal private landlords have underpaid £49.7million in tax between 2007 and 2010.

With 650 constituencies that equates to £76,000 per constituency. Given a constituency like Hyndburn where there are large numbers of landlords, as opposed to Buckinghamshire for example, we can probably expect underpayment of tax in this area to be nearer £200,000.

Graham Jones (Hyndburn, Labour)

To ask the Chancellor of the Exchequer what estimate Her Majesty's Revenue and Customs has made of the (a) level of outstanding, (b) unassessed and (c) undeclared tax liabilities by private landlords in each of the last four tax years; and if he will make a statement.
* Hansard source (Citation: HC Deb, 13 December 2010, c560W)

David Gauke (Exchequer Secretary, HM Treasury; South West Hertfordshire, Conservative)

HMRC does not hold the information requested by the hon. Member. The self-assessment regime provides for liabilities to be returned and assessed by the taxpayer.

However, the risk of potential loss of tax from private landlords was targeted by the National Property Project which ran between May 2007 and July 2010. The additional cumulative yield from 18,405 interventions settled to date is not split into separate years and totals £49.7 million. This figure is projected to reach £61 million once all inquiries from this project are concluded.