General principles: HMRC enquiries and compliance checks
A wide range of possible triggers such as random selection, risk‑based profiling, return errors or omissions, late filing, large or unusual claims, third‑party data, data‑matching systems, and past compliance history tends to cause HM Revenue and Customs (HMRC) in the United Kingdom to open either:
– a formal enquiry into a tax return; or
– a broader compliance check into a person’s tax position
MTD – Making Tax Digital software – Hammock v Xero
Here’s a practical comparison of Xero and Hammock software from a landlord/landlord-portfolio management perspective. It will cover core features, target users, pricing, ease of use, accounting/automation capabilities, rental-specific tools, integrations, security, and who each is best for.
New Changes to Property Incorporation from April 2026 – Budget Nov 2025
Incorporation Relief under Section 162 TCGA 1992 allows a landlord to defer Capital Gains Tax when a property business is transferred into a company in exchange for shares. The relief applies when the rental activity meets the recognised test for a business, rather than a passive investment. Under the current rules, incorporation relief applies automatically when the conditions in s162 are met. From April 2026 the Government will shift incorporation relief from an automatic rule to a claims-based relief.
Explaining Companies House ID verification
We have completed our ACSP registration and are now authorised to carry out Companies House–compliant identity verifications on behalf of our clients.
Electric & Low Emission Company Cars and Salary sacrifice
I have often advised my clients on tax advantages of leasing electric and low emission company cars for their directors and key employees, without reference to actual legislation.
The legislation was in Finance Act 2017, Schedule 2. This amended ITEPA 2003, Section 121A.
The taxman’s dodgy data
Over the years of JMS Accounting operation, we have dealt with many data issues in relation to HMRC. When HMRC get things wrong they cause stress and waste large amounts of time for both our practice and our clients. Clients will often not understand that HMRC are at fault and our practice wastes many man-hours resolving mistakes by HMRC.
It was some comfort to our practice to read this article in the Spectator that highlighted the extensive data problems problems at HMRC. It doesn’t solve the issues, but it helps to understand the issues that our practice has to deal with were not just experienced by us but many businesses.
HMRC nudges more company controllers
The tax office is writing to persons with significant control registered at Companies House who declared income of less than £100,000 on their last tax return, or who haven’t submitted a tax return.
Incorporation myths
There are many myths that have been generated about incorporation of a property portfolio.
What is the effect of base rate increases on Landlords?
What is the effect of base rate increases on Landlords??
How does the Sept 2022 mini-budget impact landlords?
On Friday 23rd Sept 2022, the Chancellor, Kwasi Kwarteng, presented a ‘mini budget’ which aims to help people cope with the rising cost of living while promoting a “rate of growth of 2.5%”.