This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

"Income from renting property" - proving I'm not a landlord

Joined:Sun May 16, 2021 1:30 pm
"Income from renting property" - proving I'm not a landlord

Postby InstigatorAlligator » Sun May 16, 2021 1:46 pm

Received the familiar "have you got income from renting property you haven't told us about" letter and responded that although I do own other properties they are not let and I do not make any income from them

HMRC have now written asking for proof of this in the form of bank statements from some period. I'm not averse to providing these but I don't quite see how it proves I don't receive rental income; I'm quite sure most of the illicit renting in this country is cash based..

Where does it go next? Must the process of satisfying this apparent "guilty until I prove myself innocent" chase be performed to the HMRC script? If I turn over bank statements that show a friend (nothing to do with either of the houses) regularly paying me back a loan I made him do I then start having to justify every aspect of my financial life?

Do I have any recourse to say "actually, why don't you provide me evidence of my apparent guilt so that I can respond directly to it? How about we shut this whole thing down now by me giving you the contact details of the family members that occupy these houses and you ask them to confirm they do not pay me rent?"

The only advice I find on the net is about when HMRC have it right and the person owes tax; I can't find anything applicable to people who genuinely do not let out their second houses..

Joined:Wed Aug 06, 2008 3:39 pm
Location:Operate Nationally but based in Aberdeen

Re: "Income from renting property" - proving I'm not a landlord

Postby wamstax » Sun May 16, 2021 6:39 pm

You need to be careful with this one. It is possible that they could have asked the wrong person but it could be that there could be other reasons they want your bank accounts. It is easy to turn it on it’s head by asking them why it is reasonable for you to be providing your bank account statements when they have not proved you are in receipt of rents. You could say that you are not adverse to complying with reasonable requests but first you must challenge them to put on the table their compelling evidence that you have been in receipt of income that you have not brought to their attention.
Of course this could be a catch 22 if there was compelling evidence of such as clearly you have not volunteered such information and HMRC. might also consider that any understatement was both deliberate and concealed.
Additionally you should carefully consider if there is anything else you should have reported or disclosed and didn’t

You won’t see much advice where HMRC have not got the correct taxpayer as they should get the correct person with where their information comes from. You would however be best to seek out advice on a fee basis as you are entering a potential argument area that might not come out to the best effect without a full review of your wealth and lifestyle
regards and hope this helps
Operates Nationally with competitive costs
and email and phone contact (mob 07751720507) can be obtained from websites

Return to “Tax Investigations and Enquiries”