HMRC is to launch a campaign targeting landlords who are failing to pay the tax due on rents they receive on their properties.
The campaign will target all landlords, but will be focussing compliance activity into specific landlord ‘types’, for example, those who own more than one property, specialist landlords who rent to students, people with holiday lets and those who let houses in multiple occupation.
Although the campaign will be directed at all residential landlords, HMRC is particularly focusing on:
- Landlords who let to student/groups of workers
- Landlords who let out holiday accommodation
- Landlords who let out properties for multiple occupancy
HMRC estimates that up to 1.5 million landlords may have underpaid or failed to pay up to £500 million in tax in 2009 to 2010.
Marian Wilson, Head of HMRC Campaigns, said:
‘We appreciate some people will have made honest mistakes, and some may not be fully aware that the rent from a property is taxable, and that is why it always makes sense to talk to us so we can help. It is cheaper to come forward voluntarily and pay the tax you owe, rather than wait for HMRC to come calling.
‘Telling HMRC about your tax liabilities is simple and straightforward, and help, advice and support are always available. The message for all landlords owing tax is simple-it is better to come to us before we come to you.’
If they do not do this and HMRC finds them first they will face bigger penalties and could face criminal proceedings.
If you require help with regard to this subject, help is available for landlords by calling HMRC’s Let Property Campaign Hotline on 03000 514 479 between 9am and 5pm, Monday to Friday. HMRC also intends to work with a variety of bodies over the next few months to develop tools and guidance, to enable landlords to bring their tax affairs up to date.
For further information please contact our Personal Tax Consultant, Sue Stephens.