HMRC – Targeting Domestic Landlords

Local councils have provided the HMRC with information regarding  rental accommodation and with this, HMRC is now targeting domestic landlords in an attempt to track down those who are avoiding paying tax on rental income.

It is understood that letters are being issued for information on addresses of properties, periods let, rental income, if paid weekly or monthly and the amounts.  Other questions being asked are how many tenants in the property and how the property was acquired.

Surprisingly, HMRC telephone staff have said that these probing letters are being issued without thoroughly checking whether or not the landlord is in fact fully declaring the rent on their annual tax returns.

These letters could be seen as aggresive to the law abiding tax payer who will no doubt feel that their time is being wasted.  It may also be considered a waste of time for HMRC staff which could be better invested by carefully looking into third party information.