Letting Agent charging for HMRC tax assessment
The latest statement from my letting agent had a fee of £35 for ” HMRC tax assessment”.
When I queried what this was for her reply was; “the HMRC requested information from me under new Agent Regulations that have ‘just’ been enforced, and I had to provide to them a detailed spreadsheet of all landlords (those managed and even non managed properties) for income received for 2014/2015.”
I also of course called HMRC to have this verified by them and they confirmed it’s to chase landlords who are not paying tax and it is something that will be required every year, approximately the same time too.
Can my agents charge me for doing this as it was HMRC who wanted it, in their own format, within weeks !
Has anyone else heard of this and do you think it is right for letting agents to pass this fee on to Landlords?
If she manages say 100 properties that is a quick £3,500 for her to produce a spreadsheet!
Any thoughts or advice would be gratefully received.
Many thanks
Rachel
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Comments: 184
4:39 PM, 16th November 2015, About 10 years ago
To be fair to Rachel’s agent I charge more than £70 for a Legionnaires assessment. I have to offer my landlords the service for due diligence reasons and genuinely make no money from it, so I’m delighted when they decline and say they’ll do it themselves.
Obviously the contractor who does them is making money at those prices – but he has to, he’s doing it for a living.
Nice to hear that in other respects Rachel’s agent has been excellent.
Member Since January 2015 - Comments: 68
8:49 PM, 16th November 2015, About 10 years ago
Hi Rachel
My agency makes no charge for completing the HMRC forms. They are a nuisance to deal with but really are a cost to my business.
Our accountant actually suggested we should not specifically tell our clients we provide the information as we may be deemed to be tipping them off under money laundering regulations. That sounds a bit extreme.
Graham
Comments: 85
8:53 PM, 16th November 2015, About 10 years ago
Member Since July 2013 - Comments: 561
9:38 PM, 16th November 2015, About 10 years ago
I should be one button press on the agent’s software to do ALL of them for ALL landlords. If not, it is the agent’s problem for not buying the correct software.
Member Since June 2013 - Comments: 49 - Articles: 2
1:39 PM, 17th November 2015, About 10 years ago
Hi – I’m a letting agent in the West Midlands. ( see my profile). In the past 5 years we’ve had two of these requests from HMRC.
Mark is correct, it isn’t time consuming. We provide this information and more free of charge to landlords. We inform them regarding the request for obvious reasons.
All part of the service, but perhaps that’s why we aren’t the subject of continuous complaints and landlords recommend us!!!