A campaign by HM Revenue & Customs to encourage buy to let investors to confess any undeclared tax liability has produced millions of pounds of additional tax revenue.
In 2019 HMRC found 11,129 landlords had underpaid or not paid income tax, compared with 8,704 in 2018, according to a Freedom of Information request submitted by Telegraph Money.
Additional taxes collected by HMRC from landlords on their rental income have increased from £32.8m to £44.7m in the same period.
The rise in landlords declaring unpaid tax is thought to be due to HMRC’s promotion of its Let Property Campaign introduced in 2013, which offers landlords lower penalties if they make a full disclosure.
Landlords would be wise to contact HMRC and declare unpaid taxes, rather than face large fines and even possible criminal prosecution.
If you would like to discuss your property portfolio, or buy to let, please contact our Private Client Team on 01788 539000.