4 minute read.

Reducing the ‘tax gap’ is at the heart of HMRC’s strategy towards full digitalisation. The ‘tax gap’ is the difference between the amount of tax that should be paid and what is actually paid. According to HMRC’s Official Statistics Release of June 2018 the ‘tax gap’ is estimated at £55bn which is 5.7% of the total current tax take, equivalent to half of the annual defence budget.

Approximately 10% of this is estimated as being lost via tax evasion. Although HMRC stress that any taxpayer could be the subject to an enquiry, the reality is that enquiries are either based on computer generated ‘behavioural technology’ risk-based selections or as a result of information received from sources.

5 minute read.

Gradually reliefs and allowances relating to renting are being eroded away and with the Property Tax Campaign in its fifth year, it is obvious that HMRC believe that there is still more tax to be gleaned. However, one relief that it would be difficult to withdraw entirely is the right to claim expenses incurred on the running of the property.

Renting is deemed to be a ‘business’ for income tax purposes and as such similar expenses incurred in the running of other businesses are allowable. Repairs, car running costs relating to the business use, council tax, management expenses, legal fees are all allowable.