LANDLORDS who rent out residential property in Bolton are being warned to put their house in order as they are targeted by Revenue and Customs (HMRC) in a bid to recover £500 million it believes it is being underpaid each year.

Terry Little, who runs TaxAssist Accountants in Halliwell Road, said: “HMRC has begun writing to letting agents, demanding details of rents collected on behalf of landlords for the tax year ended April 5.

“Some Bolton landlords may not even realise that they are landlords, or that tax may be due, but that won’t stop them facing hefty fines or even criminal prosecution.

“If they come forward now under the Let Property Campaign, they will get the best possible terms to settle tax and interest owed. If they don’t, HMRC will come down hard.”

The campaign applies to residential property landlords, including those with a single rental, student or holiday letting. The Council of Mortgage Lenders says there are now 1.57 million buy-to-let mortgages, an increase of 120,000 in the past year.