HMRC have just announced the launch of the Mortgage Verification scheme. On the outset this looks as though they have launched the scheme to try and tackle mortgage fraud however I believe there is a possible hidden agenda.
HMRC have formed agreements with bank, building societies and other mortgage lenders in agreeing to check information on mortgage applications, matching what is put on the application to that of what was declared on their tax returns and PAYE income.
There can be genuine differences between the information shown on a mortgage application to the information shown on a tax return as for example profits shown in business accounts are usually adjusted to take into account tax deductions and any tax reliefs available. The main concern is that any difference could now trigger a tax investigation with HMRC. This can be a long and tiresome process.
My advice would be before submitting a mortgage application check your tax returns and your PAYE records for previous years. Speak to your tax advisor and show him the mortgage form and ask him to check if it all matches up. If there are any legitimate differences your advisor can explain them to the mortgage lender who can put an explanation on the form therefore reducing any chance of investigation.
If you don't have someone looking after your tax or being your tax agent please do not hesitate to get in touch - mitch@Ljd.uk.com
No comments:
Post a Comment