LONDON: The UK could be GBP 1 billion better-off if landlords didn’t dodge their taxes. Landlord across the UK are avoiding billions in taxes by simply not declaring their rental incomes, according to new information released by Richard Murphy, a professor at the City University of London. The researcher bases his claim on his own analysis of tax dodging in the Newham Council in London. He estimated that approximately half of the landlords in the area have not registered for the self-assessment of their taxes.
The lack of registration equates to approximately GBP 200 million in missed annual taxes in London. Richard Murphy believes that if the data and assumptions are extrapolated to a national level, then the annual loss of tax income could be in excess of GBP 1 billion. Under current regulations, any landlord in the UK earning more than GBP 2 500 per year is required to register for self-assessments of their rental income for tax purposes.
