HMRC’s Latest Campaign Begins
In the latest of its series of campaigns to collect underpaid tax, HMRC are continuing targeting property owners who are under declaring tax.
Since 2007, HMRC campaigns have apparently collected over £552 million in tax from people approaching HMRC and over £224 million from a large number of follow-up activities.
HMRC also report that there are a number of criminal investigations underway and seven people have been convicted already, with custodial sentences handed out of up to two years. Those convicted have between them had to pay over £550,000 in taxes.
The latest campaign which is set to last 18 months and will look specifically at landlords letting property on a variety of different bases including long-term lets, holiday lets, student lets and workforce lets.
HMRC estimate that 1.5 million landlords underpay tax of £500 million annually. This large leakage might well explain the unusually long period over which the campaign is being conducted.
Taxpayers are urged to come forward to settle any unpaid liabilities. By doing so it is probable that penalties will be mitigated and the possibility of criminal prosecution will be avoided.
HMRC have an ever increasing bank of intelligence from other government departments, various other agencies and tip-offs from the public and will be using this information to catch those people who do not come forward.