Tax Support For Estate Agents

An Important Change…

Historically, it was possible for landlords with small portfolios to fly under the radar and not declare their income due to not knowing the rules or by deliberately failing to declare this income. Whilst we could never approve or advise this approach for a long time many landlords got away with it.

Unfortunately, now HMRC have these taxpayers in their sights.

They have requested the details of landlords from the tenancy deposit scheme providers. As you know all of your landlords have to register their deposits with a scheme provider, indeed you probably do this for many of your clients.

HMRC are now comparing this information with taxpayers’ records to identify taxpayers who have failed to declare their income. They are now writing to the taxpayers to ask them to bring their affairs up to date.

What does this mean for your clients?

If they write to your clients to request this information, then the client will be suffering a penalty of between 20 and 40% of the tax owed. As the underdeclared income could be for many years the penalty is an additional cost they really need to avoid.

Of course, if they make a voluntary disclosure before HMRC reach out their penalty would be much lower, less than 20%.

What are we doing?

I am currently helping many landlords either to declare their rental income to HMRC before they are prompted, or afterwards because we can mitigate the penalties with proper engagement.

I think that by advising your clients of the issue and providing a ready-made solution you will increase the value of your agency to them.

I can offer you the following…

1. An introducers fee of 10% of the first year’s fee charged to your client for bringing their affairs up to date.
2. A media pack to help you keep your clients informed, including a video describing the issue and solution which you can add to your website.
3. A co-branded landing page.
4. Inclusion in our co-branded press releases.

I am only looking to work with a small number of agencies on this project so if you are interested in working together then please click the link at the end of the video or fill in your details below to register your interest.