Agents Charges for providing information to HMRC ?

by Readers Question

13:39 PM, 19th September 2016
About 2 years ago

Agents Charges for providing information to HMRC ?

Make Text Bigger
Agents Charges for providing information to HMRC ?

Have any other members been charged by their agent for providing information to HMRC when their accounts do not provide the name of the managing agent to the HMRChmrc

I feel I may be being conned as I aware of another customer of the same agent who challenged a similar charge being refunded.

Many thanks

Gordon



Comments

Neil Patterson

13:40 PM, 19th September 2016
About 2 years ago

Hi Gordon,

This may be a stupid question, but how did HMRC request the information if you did not tell them who the agents were?

Gordon Cupper

13:56 PM, 19th September 2016
About 2 years ago

I had asked the agent to provide details of HMRC request,I am still awaiting a reply

ray selley

14:09 PM, 19th September 2016
About 2 years ago

I believe all letting agents are required to provide information to HMRC on their landlords on an annual basis to catch landlords who have failed to declare income from letting.Countrywide the largest letting agent charges £15 + vat for each property which is a nice little earner as i suspect that all the information on their landlords is provided electronically in one go

Steve From Leicester

14:29 PM, 19th September 2016
About 2 years ago

I'm an agent, and, Ray is correct to believe agents have to provide details of all their clients to HMRC.

As far as I am concerned this is simply a cost of business. It is not a service to my landlords, it is something my business must do in order to comply with legislation.

For that reason the cost is factored into the regular fees I charge my landlord clients - I do not make a separate or additional charge for it.

To answer the original question - does the agents terms of business specify that they will make an additional charge for this work? If it does then (regardless of whether you feel its fair or not) you should pay up. If it doesn't then refuse to pay.

My suspicion is that the terms of business won't highlight this charge, rendering it unenforceable.

Puzzler

20:19 PM, 19th September 2016
About 2 years ago

Yes my agent charges about £20 per landlord. It is the law. If you're being charged much more than that then complain.

Mark Alexander

21:49 PM, 19th September 2016
About 2 years ago

Check your contract with the agent.

If you are paying for full management I'd have thought this should be included in the fees you're paying.

And yes, all agents have to provide this information to HMRC on request.

Romain Garcin

22:07 PM, 19th September 2016
About 2 years ago

The request must take a the form of a statutory notice. Agents don't have to reply to a simple letter.

I'm sure HMRC sends the required notice, though.

Clients may be charged only if the charge was agreed.

Adrian Jones

9:49 AM, 20th September 2016
About 2 years ago

Reply to the comment left by "Romain Garcin" at "19/09/2016 - 22:07":

So what if the Landlord refuses to agree the charge? The agent can't refuse to provide the information to HMRC.

Yvonne Francis

10:08 AM, 20th September 2016
About 2 years ago

Reply to the comment left by "Adrian Jones" at "20/09/2016 - 09:49":

The problem with your comment is that agents are like banks. They simply take it from the rent or in the case of banks your account. So I imagine it is not just a question of refusing?

Adrian Jones

10:24 AM, 20th September 2016
About 2 years ago

Reply to the comment left by "Yvonne Francis" at "20/09/2016 - 10:08":

I don't understand your comment. Romain said clients could only be charged if the charge was agreed. I asked him what if the Landlord refused to accept the charge.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

44% of landlords fear Right to Rent

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More