Buy-to-let is a business, and as such strict taxation rules and regulations apply. It is simply not worth ignoring one’s tax responsibilities as a landlord. Fines for those who are caught evading tax can be heavy.
There are two types of tax pertaining to buy-to-let property, income tax and capital gains tax. The rules are complicated and are in the process of changing - between January 2017 and 2020 they will become progressively more onerous for some taxpayers, notably those in the higher tax brackets.
Every individual’s tax position is different and it is important that you speak to a fully qualified tax adviser in order to fully understand your own position.