Dear All

Her Majesty’s Revenue and Customs (HMRC) are making a new concerted effort to target landlords who are commiting fraud by not declaring this income.

The tax man is demanding lists of property clients from letting agents with addresses and property details to check them against declared tax returns. This is part of a major campaign to tackle the growing issue in tax evasion and has led to dedicated teams being set up in the Department to focus on this clampdown.

Other plans include crosschecking housing benefit payments with their colleagues at the Land Registry and with the electoral role to check if there are undeclared HMO’s (Houses of Multiple Occupation).

There are genuine landlords whom have not declared this income as they believed it was only reportable if they made an income, but this is not the case.

It is suggested that landlords take legal advice on the subject if they have concerns.

Mike