I have received a letter from HMRC and think it may be trying to tell me that I have underpaid my tax. I have two properties that I rent out and I’m fairly certain I have paid my tax correctly – and have been doing so for years.
At first I thought it was a scam. But having double checked, I can see that it definitely isn’t fraudulent.
The letter begins as follows: ‘We are writing to you because you are, or have been, a landlord who lets property.
Our reader has received a letter from HMRC which they think suggests they may not have told the tax authority about all of their rental income
‘Our information shows that you have put a deposit in a ‘Tenancy Deposit Scheme’. We have compared this information with what you have told us on your Self Assessment (SA) tax return for the year ending 5 April 2021.
‘Our comparison suggests you may not have told us about all of your rental income.’
So does this mean HMRC is now using data from the Tenancy Deposit Scheme as a tool to target landlords who they suspect to have underpaid tax on their rental income?
And do I actually owe anything or has this letter been sent out to all landlords?
Ed Magnus of This is Money replies: First and foremost, it’s great that you checked to see if it was a scam. Fraudsters are constantly attempting to mimic HMRC in a bid to fool people.
It’s always worth cross-referencing any letter you receive from HMRC with any previous communication you have on file.
It’s also worth checking any postal or website…
