Tax letters about building work

The Taxman is now sending out information requests to householders who have had extensions or other building work done. As this is not part of an official tax investigation you do not have to respond, indeed we think you should file it in the bin.

The Taxman is really trying to find out if the builder you used has declared the income on his tax return, however, he could turn his attentions to you by asking where you got the money from to pay for the extension.

Conclusion - its a lot safer to say nothing.