HMRC contacting tenants

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HMRC are looking for tax evading landlords by contacting tenants.  If you are a tenant and receive any contact from HMRC about your landlord, we recommend you contact us.

In some cases, where a landlord is overseas, rent should be paid to them net of UK tax.  The UK tax element is then paid to HMRC.  HMRC are also telling tenants they may need to deduct such tax from their rent.  Again, contact us if you have any such request from HMRC.

We understand some of these letters incorrectly threaten the tenant with penalties, whereas in some cases there may be no legal requirement to respond.

The Chartered Institute of Taxation has issued guidance on these matters

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.