Search

Half of Newham landlords could be failing to declare rental income, council claims

PUBLISHED: 14:04 15 August 2017 | UPDATED: 15:09 15 August 2017

Newham mayor Sir Robin Wales

Newham mayor Sir Robin Wales

Newham Council

Almost half of Newham landlords are failing to declare their rental income to HM Revenue & Customs (HMRC), Newham Council has estimated.

Almost half of Newham landlords are failing to declare their rental income to HM Revenue & Customs (HMRC), Newham Council says.

The warning, highlighted in a letter from Newham mayor Sir Robin Wales to chancellor Philip Hammond, revealed 13,000 out of 26,254 landlords had not registered for self-assessment after signing up for the private rented sector (PRS) licensing scheme.

The borough-wide programme, first introduced in 2013, requires Newham landlords to licence any property offered for private rent.

It comes to an end in December and its renewal is under threat due to stricter restrictions being imposed by the government.

Sir Robin wrote: “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.”

The letter also highlighted data carried out by Institute for Public Policy Research (IPPR) in 2014 which estimates that the amount of undeclared tax in London totals more than £183 million.

Sir Robin went on to write: “Tax evasion at every level takes money from vital services, including from health, education and local government.

“This is money out of the pockets of our poorest residents who rely on our services the most.

“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.”

Since its introduction, the PRS scheme has enabled 1,135 prosecutions for housing crimes to take place, totalling 70 per cent of the overall figure in London.

The programme receives huge support from residents, while three other London boroughs have followed Newham’s lead.

HMRC said it did not recognise the figure of 13,000 landlords put to it by the council.

A spokesman said: “We are working with the London Borough of Newham as part of the Let Property Campaign [HMRC tax disclosure scheme].

“This work has generated £115m in additional and previously unpaid tax and interest.”

The Treasury said it was a matter for HMRC only.

Related articles

0 comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other Newham Recorder visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Newham Recorder staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Newham Recorder account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Latest Newham News Stories

The frustration of trying to find a seat on a packed train could be a thing of the past thanks to a new platform board.

The London Academy of Excellence has been rated as outstanding by Ofsted.

10:01

Newham Council has raked in a staggering £12.7 million in five years from parking fines issued around the London Stadium, the Recorder can reveal.

Newham Council
Yesterday, 16:26

A Newham man accused of plotting to carry out a terror attack has been charged with further terrorism offences.

PROMOTED CONTENT

Newsletter Sign Up

Sign up to receive our regular email newsletter

Most read news

Show Job Lists

Competitions

Having a brand new kitchen is something that lots of people want but can only dream of. Sadly keeping up to date and making our living spaces as nice as they can be is a costly and incredibly stressful business. Even a fresh coat of paint makes all the difference but isn’t easy or quick.

Read more

Who wouldn’t love the chance to go on a shopping spree. Imagine being able to walk into a shop and choose whatever your heart desires without having to worry about how much it costs.

Read more

Digital Edition

cover

Enjoy the
Newham Recorder
e-edition today

Subscribe

Education and Training

cover

Read the
Education and Training
e-edition today

Read Now