Let Property Campaign, HMRC Targets Landlords

Over the next four months HMRC is to send letters to around 40,000 landlord it suspects of not paying enough tax.

As part of the Let Property Campaign , HMRC is targeting landlords that it believes to have paid too little or no tax on the income from rental properties and holiday homes. HMRC is also aiming to recover Capital Gains Tax from additional properties.

It is believed that 5,000 landlords have already been sent, and may have already received letters.

Once a landlord receives a letter from HMRC they have 30 days in which to respond. Failure to do so could result in increased penalties or even a criminal investigation.

Under the Let Property Campaign, which was launched in October 2013, new strategies are being applied to investigate cases. For example, where social media is being used to advertise a holiday home.

HMRC estimates that over 1.5m individuals own more than one property, although fewer than 500,000 are actually registered with HMRC.

For three years HMRC has been trying to recover what it estimates as £500m of underpaid tax per year. The clampdown is part of a continued campaign by the government to reduce the deficit as a result of tax avoidance.

If you are a landlord with buy to let properties the time to act is now. Penalties will be significantly lower if a voluntary disclosure is made to HMRC, rather than following receipt of a letter, a full investigation into tax affairs is launched.

To discuss your circumstances with our tax investigations professionals in complete confident call 0113 387 5670 or fill out an Enquiry Form .