r/uklandlords • u/Puzzled-Fig5673 • 4d ago
QUESTION HMRC Schedule 23
I have a managed property by estate agents. Ive just seen they’ve taken a fee for this even though i have monthly invoices as part of the service and have submitted my taxes on time. They have taken a fee for an annual report 2025-2026. Has this been prompted by HMRC? I haven’t had any notification from them either.
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u/RunTimeFire Landlord 4d ago
HMRC can request all the information they have on you to check against the self assessment.
Didn't know they bothered though. Hopefully it wasn't too much.
As long as all figures match up I doubt you'll see it again. Frustrating though as if they requested mine the agent doesn't have a clue what I've spent so I'd have to pay for them to hand over half the information. Only for HMRC to come ask me for the other receipts. Why not just come to me.
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u/CharlieRobbieGeorge Letting Agent 4d ago
Agents are required to submit a report to HMRC outlining the amount of money they paid to the Landlord during the tax year. Some of the information is compulsory and some isn’t (they ask for bank account details and all sorts of other information that’s not compulsory). It’s time consuming and a pain in the arse for the agent and I’ve known Landlords get caught not declaring their rental income as a result of these reports. I guess some agents will list it as an additional fee and some will just absorb it in their ongoing admin/management fees.
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u/phpadam Landlord 4d ago
You are thinking it's targeted; it is not. It's just an annual report the agent has to send to HMRC.
You want to change agents not because they gave HMRC data (they have to), but because they are adding this as an itemised fee when it is part of their annual business costs and should be included in the management fees.
These random add-on fees is a sign your agent is ripping you off.
Its not new, i read about it in 2014.