HMRC targets buy to let landlords with nudge letters

HMRC targets buy to let landlords with nudge letters
HMRC targets buy to let landlords with nudge letters

Buy to let landlords are being contacted by HMRC in its latest nudge campaign, which identifies people who may not be declaring their full rental income.

These nudge letters are widely targeted at individuals or businesses based on information received, primarily from other governmental departments such as, banks or, the tenancy deposit scheme.

Landlords in England are limited to taking a five weeks’ deposit for new and renewed tenancies with rent under £50,000 a year or up to six weeks if the annual rent is £50,000 or more. As most landlords take the maximum deposit, it is not a difficult calculation for HMRC to identify the expected rental income which should be included in a tax return.

These nudge letters tend to include a statement saying that HMRC has received relevant information, suggesting the landlord review their tax position. The letters will not take into account vacant periods or reductions in rent and will often mean that no action is required.

Landlords are advised to review their tax position if such a letter is received to identify if any disclosures are needed. If they are ignored and it is later found that tax is due, it may lead to a formal enquiry.

If you wish to discuss the above, please contact Simon Boxall at

About the author

Simon is the Tax Director at Ward Williams and has more than 20 years of practical experience working in the tax profession.


Specialising in personal tax, Simon qualified as a Tax Technician in 2007, having been awarded with the Ivison medal for attaining the highest mark in the Personal Taxation paper in 2006.


As department head, Simon oversees the tax team across the Ward Williams group, whilst managing a diverse portfolio of clients including high net worth individuals, doctors, directors of owner managed businesses, partnerships and sole traders.

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