What’s the difference between a Scottish scrap-metal dealer, a chip-shop and a landlord from Cumbria?

According to the Tax Man –  very little.

Her Majesty’s Revenue and Customs (HMRC) has recently launched a raft of new task-forces to seek out tax evaders in different areas of the country.

The five new task forces have been instructed to focus specifically on:

  • scrap metal dealers in Scotland, focusing on those who are deliberately suppressing their income or inflating expenditure to evade paying tax
  • construction traders who are self-employed or run their own company who suppress sales or over-claim expenses in the North West and North Wales
  • taxpayers not submitting their statutory returns across Corporation Tax, Income tax Self-Assessment, PAYE and VAT in the South East
  • fast food outlets deliberately falsifying their records and mis-declaring their true sales levels to avoid paying the correct taxes in Scotland
  • landlords – owning or renting three or more properties – evading their tax responsibilities in North West and North Wales.

Exactly why landlords in Wales and North West England are considered less likely to be up to date with their tax returns remains unclear, but according the minister responsible they should expect to be found out:

Exchequer Secretary to the Treasury,  David Gauke MP, warned:

“We will not tolerate those who break the rules. This taskforce will come down hard on scrap metal dealers and their customers or suppliers who have chosen to break the rules or deliberately evade the tax they should be paying. This is just the start”.

“It doesn’t matter who you are – HMRC can and will track you down. You will face a heavy fine, a possible criminal prosecution and ultimately jail”.

Of course the vast majority of landlords have nothing to worry about – but it is a timely reminder for all of us that the deadline for paper tax returns has just passed, while landlords planning to submit an online form only have until 31 January 2012 to file. Click here for key tax dates.

For more information on the financial aspects of running a portfolio why not visit the NLA Library or consult a qualified NLA Recognised Supplier.

5 thoughts on “What’s the difference between a Scottish scrap-metal dealer, a chip-shop and a landlord from Cumbria?

  1. It bugs me when people don’t pay their tax. Why should they have an unfair business advantage? If you earn a lot of money you should pay a lot of tax. It’s the job of well off people to support those who are less fortunate and this is partly done by the tax system.

    Having said that if you earn a lot of money you should also be giving a lot to charity or other good causes. Giving something back to society isn’t just about paying your taxes.

  2. Charity begins at home but each person should decide what to do with his/her money and should not be obligatory to give to charities; as it may be that they are helping individuals who also need help and may not wish approach a charity.

  3. I work in the offshore oil and gas industry , uk continental shelf as a saturation Diver, there is a special tax code schedule ‘D’ just for divers just so that we don’t get out of paying tax or qualify for any seamans tax relief, I pay 40 % plus on anything I earn. My Wife and I are also landlords and Landlady,
    It seems to me the government target people or groups of people that are easy targets for recovery I work hard for my money and am proud to pay my bit.
    However, this is my point a non national can come to the UK , predominantly South African under a Holliday visa via Heathrow and work on a UK vessel for a major North Sea company on the UK continental shelf and pay no tax here or at their Domicile residence. Were talking 6 figure salaries here and they have been doing it for years and continue to do it unchecked. There are literally
    hundreds of them in the Working in the North sea, why don’t they instigate a
    department to chase thease guys down I guarantee you would raise more money than harassing an over stretched Landlord ! Start with one of Britains biggest Shipping Groups ” Bibby Offshore ” shouldn’t be too difficult just wait on the quayside in Aberdeen !

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