It is estimated that as many as 1.5 million landlords may be in the ‘failing to pay’ or ‘under-paying’ tax brackets. HMRC has announced that it is renewing its effort to clamp down on income tax evasion, with landlords being a prime area for them.
The penalties are criminal fines if discover, but there is good news. HMRC has opened an amnesty to allow defaulters to volunteer and pay the tax monies and lower fines. So if you are unsure, now may be a good time to look into it.
For further information go to the HMRC website or speak to an accountant who will be able to advise you.