HMRC Continues To Target Buy-To-Let Landlords

In the last financial year, HMRC has collected over £17 million in unpaid tax from buy-to-let landlords across the country ...

HMRC has become increasingly concerned about the amount of unpaid tax in this sector so it started to target over 4,000 landlords it discovered via its Let Property campaign.

"It's using something called Connect AI!"

This is a cloud-based programme that flags potential targets by cross-referencing data from sources such as the Land Registry, Zoopla and Rightmove. HMRC can see if a property is rented through the lists it received from letting agents.

When it's a smaller landlord, this information can also come from the Tenancy Deposit Scheme, which is a legal requirement for all renters and landlords, meaning it is almost impossible to rent a property without HMRC knowing about it.

A number of overseas landlords who own buy-to-lets have also been targeted. So far, 248 ex-pats came forward to admit underpayment of tax on rental income last year and it is very possible that underpaying landlords could face severe consequences.

"Some landlords may simply be unaware!"

However, it is possible that some buy-to-let landlords may simply be unaware of their tax liabilities on income earned from rentals. Anyone who is worried should seek professional tax advice to prevent an investigation and potential penalties.

HMRC are returning to full strength post-pandemic, and many more landlords could soon be targeted.


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