Named and Shamed – Landlords on HMRC Deliberate Tax Defaulter List
In recent years, Her Majesty’s Revenue and Customs (HMRC) has intensified its scrutiny of property owners who fail to meet their tax obligations. The HMRC’s Deliberate Tax Defaulters (DTD) list has become a public register of shame, exposing individuals and companies – including landlords – who deliberately underpay taxes.
For landlords in the UK, this development serves as a sobering reminder that non-compliance with tax laws carries not only financial penalties but also reputational damage that can last for years.
This article explores the implications of being on the HMRC Deliberate Tax Defaulter list, why landlords are increasingly featured on it, and what property owners can do to remain compliant in an era of enhanced enforcement.
What Is the HMRC Deliberate Tax Defaulter List?
The HMRC Deliberate Tax Defaulter list is published quarterly and includes individuals and businesses that have:
- Deliberately evaded more than £25,000 in taxes, and
- Received a penalty following a tax investigation.
Each entry remains on the list for up to 12 months and includes the defaulter’s name, address, type of business or occupation (including “property letting” or “landlord” where applicable), the period during which the default occurred, the amount of tax evaded, and the penalty imposed.
The list is not a simple clerical note – it is a name-and-shame mechanism aimed at deterring tax evasion through public accountability.
Landlords in the Crosshairs
Over the past decade, landlords have become one of the most scrutinized groups when it comes to tax compliance. Several key developments have contributed to this trend:
Boom in Buy-to-Let
The expansion of the private rental sector has seen an increase in small-scale landlords, many of whom own one or two rental properties. Some are accidental landlords – individuals who rent out a property they once owned. While these landlords might not consider themselves “businesses,” HMRC expects the same level of tax compliance.
Introduction of Let Property Campaign
Launched in 2013, the Let Property Campaign gave landlords a chance to voluntarily disclose previously undeclared rental income. However, after several years of promoting voluntary compliance, HMRC has shifted to a more aggressive stance, now focusing on enforcement.
Access to Third-Party Data
HMRC has vastly improved its data-matching capabilities. It can now access information from letting agents, local councils, banks, Airbnb, and even online rental platforms. This makes it easier to identify landlords not declaring their rental income.
Digital Tax Records
With the arrival of Making Tax Digital and improved digital footprint tracking, landlords who under-report income or overstate expenses are more easily caught during compliance checks.
As a result, an increasing number of landlords – from small-time owners to large-scale property investors – are now finding themselves exposed on the Deliberate Tax Defaulter list.
Case Studies: Who Ends Up on the List?
The HMRC list is a stark catalog of cautionary tales. A landlord in Essex failed to declare rental income over several years, resulting in tax arrears of £89,000 and penalties of £56,000. In another case, a London-based property owner who let multiple flats through short-term platforms underreported earnings, triggering a £112,000 tax bill and a £75,000 penalty.
In both cases, the landlords were not only hit with significant financial penalties but also saw their names publicly listed, tarnishing their reputations and potentially jeopardizing future business dealings or mortgage applications.
Common red flags that lead to investigations include:
- Significant bank deposits inconsistent with reported income
- Ownership of multiple properties with no declared rental income
- Rental advertisements discovered online without corresponding tax records
- Tenants claiming housing benefit where no landlord tax is reported
The Cost of Deliberate Default
The financial penalties for deliberate tax default can be severe. HMRC categorizes behavior into:
- Non-deliberate errors – minor mistakes or oversights
- Deliberate but not concealed – where a taxpayer knowingly gives incorrect information
- Deliberate and concealed – where active steps are taken to hide the truth
For landlords found guilty of deliberate evasion, penalties can range from 35% to 100% of the unpaid tax. If concealment is involved, the upper end of the scale is applied. In addition, HMRC can demand repayment of backdated tax (often over several years), and interest charges accrue until the liability is settled.
Being named on the DTD list is not just a financial matter – it affects personal credibility. Future tenants, lenders, letting agents, and even local authorities may view landlords on the list as untrustworthy. For those who operate under company names, the reputational damage can extend to business relationships and public perception.
HMRC’s Expanding Arsenal
HMRC continues to enhance its enforcement capabilities, particularly against landlords:
Connect System
HMRC’s AI-powered “Connect” system pulls data from over 30 sources to identify discrepancies. It can spot undeclared property income through bank activity, land registry data, Airbnb lettings, utility accounts, and even social media.
Information Notices and Property Campaign Letters
Suspected landlords may receive letters urging them to come forward under the Let Property Campaign or face investigation. Ignoring these prompts often results in harsher penalties.
Cooperation With Local Councils and Letting Agents
Councils share landlord license data while letting agents must provide client rental records. This forms a comprehensive database HMRC uses to detect non-compliance.
International Data Sharing
Under the Common Reporting Standard, HMRC receives overseas property income data. UK residents who let properties abroad are not immune.
How Landlords Can Stay Compliant
The increasing inclusion of landlords on the Deliberate Tax Defaulter list is a wake-up call for the sector. Compliance is not optional, and ignorance is not a defense. To stay on the right side of HMRC, landlords must:
Declare All Rental Income
Whether from short-term lets, buy-to-let properties, HMOs, or overseas properties, all rental income must be declared on a self-assessment tax return.
Keep Accurate Records
Maintain detailed records of rental income, expenses, mortgage interest, maintenance costs, and utility bills to support any claims made in tax returns.
Seek Professional Advice
Using a qualified accountant or tax advisor who understands property tax law can help ensure compliance, optimize deductions, and reduce audit risk.
Avoid Cash-Only Arrangements
Cash-in-hand rental deals may seem convenient but are easily exposed by tenant declarations, housing benefit records, or banking inconsistencies.
Declare Past Non-Compliance Voluntarily
If a landlord has failed to declare income in previous years, they should consider making a voluntary disclosure through the Let Property Campaign before HMRC discovers the omission.
Why Reputation Matters in the Property Business
The consequences of being named as a deliberate tax defaulter go beyond fines. Landlords rely on a chain of trust: mortgage lenders, letting agents, contractors, tenants, and insurers. Once on HMRC’s list, that trust is severely undermined.
Mortgage lenders may review your eligibility or increase scrutiny on loan applications. Insurance providers might raise premiums or decline cover. Letting agents may be hesitant to manage your property, and tenants may look elsewhere. Even when landlords are later compliant, the stain of past misconduct can persist online and in the industry.
Final Thoughts: A Climate of Enforcement
Landlords must now operate in an environment where transparency, record-keeping, and full tax compliance are no longer optional. HMRC has the tools, authority, and political backing to pursue non-compliant landlords aggressively. The publication of the Deliberate Tax Defaulter list sends a clear message: those who flout the rules will not only be penalized financially but also publicly exposed.
For landlords, staying off the list means taking compliance seriously. Those who take shortcuts or attempt to hide rental income should understand that HMRC is watching – and once named and shamed, reputational recovery can be far more expensive than simply paying the tax owed.
In Summary:
- The HMRC Deliberate Tax Defaulter list exposes landlords who deliberately underpay tax.
- Offenses include underreporting rental income, inflating deductions, or concealing property income.
- The penalties are severe, and the reputational harm can be long-lasting.
- With sophisticated data tools, HMRC can easily detect discrepancies.
- The best defense is full compliance, accurate records, and voluntary disclosure where needed.
Landlords must treat taxation with the same seriousness as tenancy law or property maintenance. In the age of digital enforcement, even the smallest oversight can place you on HMRC’s radar – and in the public spotlight.
