Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.

Proposed HMRC Penalties May Affect Landlords Over Tax Errors

Landlords could face penalties of up to 30% of unpaid tax after making ‘careless’ mistakes in their self-assessment returns, according to a report by Property118. HMRC is seeking powers to decide whether an error should be treated as deliberate when a taxpayer fails to correct it.

The Daily Telegraph reports that under the proposed changes, HMRC would have greater authority to determine the nature of errors in tax returns. Currently, inaccuracies are generally regarded as deliberate only where someone has intentionally provided incorrect information.

These proposed penalties are particularly relevant for landlords who submit self-assessment tax returns. Letting agents and inventory clerks may wish to alert their landlord clients to the potential for increased scrutiny and penalties related to tax reporting errors.