RURAL landlords are likely to come under the spotlight in HM Revenue & Custom’s latest crackdown on tax evasion, according to specialist Alison Robinson.

HMRC has been running a programme across a range of sectors, trades and professions to encourage disclosure with its latest focus on landlords who let out residential property, whether at home or overseas.

Ms Robinson, partner in the landed estates and rural business group of Harrogate chartered accountants Saffery Champness, said the let property campaign puts the onus on rural landlords to bring their tax affairs up to date in exchange for reduced penalties.

The HMRC campaign will focus on landlords who rent out single or multiple properties, or who rent out a room in their main home, for more than £4,250 per year – £2,125 if the room is let jointly.

The campaign will also target landlords who live abroad but rent out UK property, or vice versa, as well as those who rent out their holiday home when not being used by themselves, or who operate in specialist areas such as renting student accommodation or workforce accommodation.

Ms Robinson said: “The scheme, in line with other similar HMRC initiatives, is to encourage property owners and landlords to come forward voluntarily with information in exchange for a reduced penalty.

“It does not apply to companies or trusts and therefore a number of rural enterprises will be excluded; nor is it open to landlords renting out commercial property.

“Those not coming forward and who may not be declaring rental income can expect higher penalties and even criminal prosecution if HMRC chooses to launch an investigation.

We would therefore encourage any residential landlord with any shred of doubt as to his obligations to consult with their professional advisor at the earliest opportunity.”