HMRC personal tax investigations bring in record haul Increased scrutiny of residential landlords and online traders has delivered a jump in exchequer revenues from investigations into self-assessed taxpayers. The amount HM Revenue & Customs (HMRC) has raised through personal tax investigations has more than trebled over the past three fiscal years, according to figures obtained from a freedom of information request by accountants UHY Hacker Young. In 2013-14, the tax authority raised £845m in unpaid tax through such investigations, excluding those into the wealthiest taxpayers whose affairs are scrutinised by a dedicated "high net worth unit." This represents a 39 per cent increase on the extra tax take in 2012-13. Mark Giddens, head of private client services at UHY Hacker Young, said that taxpayers suspected of underpaying tax on rental income have received particular attention from tax officials. HMRC has been in pursuit of landlords for some time. This year, however, HMRC has ramped up its campaign, utilising every tool to hunt down undisclosed income from rental properties. The tax authority has acquired enhanced powers to demand information from third parties. In the clampdown against undeclared rental incomes, HMRC can obtain information from letting agents and solicitors, as well as the Land Registry. Dawn Register, tax director at accountancy firm BDO, said that the tax authority is much more able to "join up the dots" as more taxpayers file their tax returns online. As more information is held in electronic form, HMRC can cross-check details more easily. "There is no such thing as a random enquiry any more," said Ms Register. Enquiries are much more targeted . . . [and are] usually acting on specific information that the Revenue holds. To encourage taxpayers to volunteer information about unreported tax liabilities - acquired inadvertently or not - HMRC has launched a series of initiatives targeting specific professional groups that are seen as prone to under-reporting incomes. People are encouraged to come forward with the promise of only relatively minor penalties, normally of around 10 per cent, and very limited retrospection. Higher penalties, up to the value of the unpaid tax in question, are reserved for taxpayers who do not volunteer information and HMRC may look into their tax affairs for up to the past 20 years. In addition to the "Let Property" campaign, which targets landlords, another prominent initiative targets individuals who have undeclared additional income, such as consultancy fees and money from the proceeds from selling second-hand goods. "These are things like eBay trading, which are not difficult to do below the [HMRC] radar, and it takes some effort on the part of the Revenue to monitor," said Mr Giddens. Groups previously targeted by the tax authority have included doctors, dentists and plumbers. This week, a doctor who failed to volunteer information was judged to have evaded £185,000 of tax over a four-year period and was jailed for 18 months.