The capital is an expensive place to live, work and play, however it has been suggested that 13,000 landlords in Newham have found a way to ensure a little more ready cash in their pocket.
According to Newham Council, these thousands of landlords have failed to accurately declare income received from renting properties, meaning if the trend is maintained across the capital, there is up to £200m worth of unpaid tax floating around across London.
Of the 27,000 landlords operating in the area, 13,000 had failed to register for tax self-assessment, a legal requirement for landlords receiving over £2,500 a year in rent.
Nweham Council has shared data from its licensing scheme – the first to be introduced in the country back in 2013 – with HM Revenue and Customs in a bid to uncover the details of landlords who may be squirreling away more profit than they are entitled to, so there are a fair few who may be facing a nasty bill from the taxman.
It is our understanding that, to date, up to 13,000 Newham landlords are of interest to HMRC, where there are discrepancies between declared income and our records, with potentially significant financial implication for the exchequer. Our core grant funding has halved since 2010-11, that’s less money for our schools, less money for social care, and less money for housing. I urge you to assess the additional benefits of Newham’s licensing scheme in assisting the exchequer to address tax evasion by landlords.In a letter sent to Chancellor Philip Hammond, Sir Robin Wales, Mayor of Newham
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