Landlords to be responsible for tenants tobacco tax evasion?

Landlords to be responsible for tenants tobacco tax evasion?

8:25 AM, 3rd March 2017, About 7 years ago 66

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Just received the following from Local Landlords Association (Devon);

HMRC consultation on preventing tobacco duty evasion: property implications

HM Revenue & Customs (HMRC) has published a consultation on proposals to tackle tobacco duty evasion and other excise duty evasion. This follows an informal consultation in which several respondents suggested imposing a duty of care on landlords where there was evasion.

Property practitioners will be interested to note that the consultation includes two key proposals (in section 6):

  • That HMRC would write to landlords and landowners associations asking them to voluntarily add a clause to their standard leases prohibiting illicit tobacco trading and other illicit excise trading.
  • That there would be new legislation imposing a duty of care on landlords and landowners of properties used in tobacco (or other excise duty) fraud. They would be under a duty of care to ensure that their properties are not used to evade duty, and there would be a civil penalty for non-compliance with this duty.

There would be a defence for landlords or landowners who took reasonable steps to prevent future wrongdoings in their properties. For example, there would be a defence where:

  • The relevant lease provides for termination where there is any illicit tobacco trading (or any other illicit excise activity), and the landlord evicts anyone who subsequently violates these provisions.
  • Landlords conduct periodic checks on their premises.
  • The consultation also seeks views on what reasonable steps landlords and landowners could be expected to take to address the issue of illicit trade in their properties, as well as the possible sanctions HMRC could apply to landlords and landowners who had not taken such adequate steps.

The consultation will close on 12 May 2017.

Source: HMRC: Open consultation: Sanctions to tackle tobacco duty evasion and other excise duty evasion (17 February 2017).

Is this another case of ‘Passing the buck ‘ and making Landlords do the Job for the HMRC ?

Mike


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Comments

les

21:38 PM, 3rd March 2017, About 7 years ago

Of course this includes all the the council housing associations ,and any other definition of landlords or social housing.....or are they excempt as usual. It seems that is where you might find tax evasion rather than private landlords tenants!

CazT

22:38 PM, 3rd March 2017, About 7 years ago

Good evening all...I'm sitting here trying to convince myself that it's April 1st and I'm losing out on that battle! So, I've written an email. I will put it up on here, but as I have my own inimical style of letter writing, I don't expect anyone else to use it (feel free to adapt if anything catches your attention). I am still reeling and probably won't sleep a wink tonight!!

Sir
I am NOT a Customs and Excise Officer, nor am I a member of the local constabulary - I am a 65 year old woman who owns two properties (used to be four before the Government's new tax laws)!! I purchased the properties as a means of supplementing my State Pension because I had to stop work early due to disabilities.
My plan was to hang onto them until I was unable to look after myself in my own home, then sell them to pay for my care. I am a part of the last generation that was brought up to save for their own care and not rely on the State as is the norm nowadays.
Two of my properties had long-term tenants, neither of whom had an increase in their rent in many years, that is until the current government decided to tax the PRS on money that was not income, but a legitimate business expense (see Clause 24). I have since sold those properties - one to the current tenants, a young couple with a child - at below market value. The other, a more difficult rental property, was purchased by another would-be landlord. Over the eight years I owned these properties, I spent thousands on everything from complete central heating to carpets and curtains, because I would not put a tenant into a property that I would personally not be prepared to live in myself.
How on earth do you expect a landlord or their agent, to monitor legal/illegal use of tobacco/tobacco products? In their contracts, my tenants are entitled to "quiet enjoyment" of their home. An unannounced visit by a landlord/agent is only permitted under the direst circumstances. With notice being at least twenty-four hours, who would leave illicit tobacco products open to discovery? I have not had any form of police/customs training - will the government be funding my education? Will the government be fighting my legal battles when my tenants decide to sue me?
I thought Clause 24 was bad enough, then we were told to check passports and ensure our tenants had the right to be in the UK and I knew I was in trouble - as a pensioner I can't remember why I went into a room sometimes! What on earth are you thinking of? Please consult with landlords and agents before this is written in stone. I am not a large portfolio owner (as are many, many landlords) and I use an agency, and like many others I am extremely concerned with the implications of this 'suggestion ' and I implore you not to saddle us with yet another unreasonable regulation.

Yours faithfully
Carol Thomas
Landlord and long-time member of Property118.com

Gary Dully

10:10 AM, 4th March 2017, About 7 years ago

Reply to the comment left by "Grumpy Doug" at "03/03/2017 - 11:21":

I have come up with a letter to give my tenants, so that I don't impede on their Quiet Enjoyment.

Dear Tenant,

Please accept this letter as notification of my intention to carry out an inspection of your property, within 48 hours.

I shall be bringing my sniffer dog, (Gracie), who will want to sniff your bum hole, promptly followed by your crotch.
(Please don't bother to shower, it makes her sneeze and affects her allergies).

As you know, we have spent over £8,000 to train her to sniff out contraband, as required by the new HMRC legislation, only affecting 1 in 5 landlords, that now house cannabis producing tenants and contraband tobacco products.

Unfortunately, it is now your landlords role to search your loft space, lift up your carpets and laminate flooring if Gracie barks and sniffs something out.

We purposely purchased a Cocker Spaniel as they are noted as having an excellent sense of smell and can sniff a Kipper as far away as the moon, so as to cause the least amount of disturbance.

May I draw your attention to Term 5.1 of our tenancy agreement, a copy of which you have previously been given, which allows us access to your property to inspect at short notice.

Its under the section "Collapse of the Police, Custom & Excise or Immigration Service".

Enclosed is an Excerpt:

5.1 Upon the signing of this agreement, the tenant agrees and the landlord agrees that the landlord can become a "grass" in regards to illicit contraband; the tenant agrees to reimburse the landlord for any broken ribs, dog biscuits, dental work, latex gloves or plastic surgery required to reconstruct the landlords face or reproductive equipment.
The tenant also agrees not to whistle "Hitler has only got one ball", whilst you stand to attention in the hallway, with your 'papers' or distract our sniffer dog, (Currently called Gracie), with any rubber chews or slippers.

Ps: If she shits on your lawn, we will of course utilise our poop scoop.

Kind Regards

Mr Gary Dully
and Gracie (Woof)
Landlord

Grumpy Doug

12:05 PM, 4th March 2017, About 7 years ago

Reply to the comment left by "Gary Dully" at "04/03/2017 - 10:10":

Fantastic !! Made my day 🙂

CazT

13:58 PM, 4th March 2017, About 7 years ago

Reply to the comment left by "Gary Dully" at "04/03/2017 - 10:10":

I think I like your email better Gary - did you send it (?) ? ???

Hazel Taylor

16:03 PM, 4th March 2017, About 7 years ago

Am I supposed to be responsible for my tenant who is now starting a life sentance for murdering his girl frind in my property?

TheMaluka

16:55 PM, 4th March 2017, About 7 years ago

Reply to the comment left by "Hazel Taylor" at "04/03/2017 - 16:03":

My goodness how disgraceful, not only should you have been held responsible for the murder you should now be serving the life sentence and your tenant should be walking free. Have you no sense of shame?

Gromit

16:57 PM, 4th March 2017, About 7 years ago

Reply to the comment left by "Hazel Taylor" at "04/03/2017 - 16:03":

No.

But if they are running any kind of business they may be evading paying Corporation Tax and VAT. Or if they've a job then they may not be paying Income Tax.

Hazel Taylor

16:58 PM, 4th March 2017, About 7 years ago

Hello,

Am I supposed to be responsible for my tennant who has just started a life sentance for the murder of his girl frient in my property?
Hazel Taylor

Gary Dully

18:17 PM, 4th March 2017, About 7 years ago

Reply to the comment left by "Hazel Taylor" at "04/03/2017 - 16:03":

What did you do with the corpse?

I had to get a white paper suit on at one of my HMO's as the tenant had died about two weeks before and he exploded across the room when the Police moved the body.

It took 25kg of kitty litter to soak up all the body fluids from Asda.

We had to burn all the furniture, laminate and mattress in the back garden and I was reported to environmental health by a neighbor.

Ruined my week and I had to get a repossession order for the room at Birkenhead County Court.

My accountant says BTL is an armchair investment, it didn't smell like one.

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