CFP Software Urges Agents To Be Prepared For Potential HMRC Changes
CFP Software, the market leader in lettings and property management software, is urging all lettings agents to be prepared for potential changes from HM Revenue & Customers (HMRC) which could dramatically increase the amount of tax raised from landlords.
HMRC are currently consulting on changes that could see lettings agents forced to give details of all the landlords on their books, even those that they do not currently collect rent for, to help HMRC improve taxpayer compliance as part of the Property Project, which targets non-compliant landlords.
HMRC estimates that 10% of agents’ clients are on an introduction-only basis – charging landlords a one-off fee for finding a tenant to occupy their property and therefore HMRC wants to expand its powers to include those landlords to find undeclared income.
CFP believes that this will cause even more work for lettings agents and far more correspondence with HMRC, as well as increased record keeping ensuring that the agents produce all of the necessary documentation, which could lead to increased cost and staff time, especially for smaller agents.
Mark Daruvalla, Managing Director of CFP Software, comments: “We are urging all lettings agents to ensure that their tax records for their clients are in good order and easy to access, not only for preparation for this potentially new legislation but also to ensure best practise in providing HMRC with the right information at the right time.
“Good software can also ensure that legislative and legal compliance matters are taken care of and we pride ourselves on providing the advice and tools to help lettings agents to deal with all aspects of their ‘paperwork’, including dealing with the tax reporting for HMRC.”
CFP Software, owned by GMG Property Services, specialise in supplying only the best lettings, property management, accounting and estate agency software. CFP software is used by over 2,300 property managers, letting agents and estate agents across the UK, with over 9,000 user licenses, making CFP the market leader in its field.
