Over the past year there has been media coverage of the HMRC constantly keeping tabs on the buy-to-let sector resulting so far in seven convictions for landlords failing to inform them of their rental revenues.

The HMRC had previously offered all landlords renting out residential properties an amnesty if they had not informed them of their income stream. The HMRC estimates that it needs to recoup over half a billion pounds from the sector of unpaid tax.

The government says that there approximately 1.5 million residential landlords and the HMRC'S campaign on the buy-to-let sector shows that they are determined to bring all non-tax paying landlords to task.

 

The HMRC's "The Let Property Campaign" was started in December 2013 and has another eighteen months to run. It is designed to assist people who have undeclared rental income to bring their tax affairs up to date and to ensure that it is kept this way.

In the last five years the HMRC has run a series of campaigns targeting direct selling, property sales and undeclared overseas income resulting in receiving more than £552 million of tax from people who declared their incomes and a further £224 million from other activities that they pursued.

There are ongoing criminal investigations being carried out and already seven people have been found guilty of not declaring rental income and penal sentences have been handed out of up to two years. The seven convicted people between them have had to pay more than half a million pounds.

Marian Wilson, head of HMRC Campaigns, said: ‘All rent from letting out a residential property or holiday home has to be declared for Income Tax purposes. Telling us is simple and straightforward.

‘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 always 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 available. The message for all landlords owing tax is simple – it is better to come to us before we come to you.’