The latest data has revealed that 16,110 landlords declared unpaid tax during 2018/19 – up from just 6,600 in 2017/18.
Due to the number of landlords declaring unpaid tax, HM Revenue & Customs managed to recover £42 million in total during this period up from £21 million during the previous year.
Much of this unpaid tax relates to undeclared rental income and comes as the result of HMRC’s promotion of its Let Property Campaign, which has encouraged landlords to be open and honest about unpaid tax in return for more lenient penalties.
Launched in 2013, the campaign was originally only meant to run for 18 months but it has been extended and has continually bombarded landlords suspected of avoiding or underpaying tax with letters and notifications.
Although the rise in underpaying landlords coming forward is significant, the original campaign hoped to recover up to £500 million a year from more than 1.5 million landlords that HMRC suspected weren’t paying the correct tax.
In fact, only £85 million out of the anticipated £500 million in underpaid taxes has been recovered since the campaign was launched.
If you believe you have unpaid tax or are unsure about your current position with regards to tax, please speak to our property tax specialists immediately.