HMRC investigates Buy to Let Landlords

iStock_000015596007XSmall_checkingHMRC sends thousands of tax letters to landlords

HMRC is turning up the pressure on buy-to-let landlords who may have underpaid tax on their rental income by sending out 40,000 letters to landlords.

The letters ask the recipient to contact HMRC to confirm details of their tax affairs or run the risk of a tax investigation.

Your client may well have received one of these letters already, as HMRC has already written to some 5,000 landlords. The letter provides the taxpayer just 30 days to respond before HMRC escalates its investigation into their tax affairs.

The letter warns that taxpayers who do not contact HMRC voluntarily to discuss their tax affairs are at risk of a “higher penalty or … criminal investigation.”

We have a client where the failure to disclose was picked up from information provided by the rent deposit scheme to HMRC.

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