HMRC are on the war path for landlords

Those landlords who owe tax on rental profits are requested to disclose information as part of a campaign that will run for at least 18 months from its launch in September 2013 in efforts to re-coup significant underpayments of tax on land and property.

This applies to those who have deliberately avoided declaring and paying tax and those who may have just misunderstood the tax rules around renting residential property. This includes single rentals, multiple rentals and holiday let owners.

HMRC estimate that 1.5 million landlords may be liable to tax of over £500 million each year in underpayments. It is an area of serious concern that the government have high on their agenda to tackle.

Those landlords who voluntarily opt to declare their miscalculated taxes under the campaign will receive better terms and lower penalties than if targeted by HMRC after the campaign closes. These landlords could face penalties of up to 100% of the tax plus possible criminal prosecution.