Mortgage intermediaries are being warned to inform clients of their responsibility to declare buy-to-let income on their tax forms. Mortgage Portfolio Services are concerned that clients could seek compensation from mortgage intermediaries who do not address tax matters if they are penalised for failing to declare buy-to-let income in their tax returns.
Our view
Most people are law abiding citizens and will declare income. The problem is 1) those who spoil it for the rest of us and do not declare and 2) with departments such as the Inland Revenue and Customs and Exercise now merging, there is greater information sharing. Not forgetting that even local councils now also share information with tax authorities.
You have been warned.