The number of landlords being caught and fined for underpaying income tax continued to increase year-on-year, with more than £33m being recovered in 2022/23, up 73% from £19.3m in 2021/22, largely as a result of HMRC stopping activity during the pandemic.

According to RSM UK, the tax burden on landlords is estimated to reach £8.3bn this year, up from £7bn collected by HMRC in 2019-20 – due mostly to frozen tax allowances and the removal of reliefs.

In total, the value of penalties issued hit £2m, an increase of 53% from £1.3m the year before, according to HMRC data, but still down on pre-pandemic levels of £2.5m.

Last year, 5,429 landlords failed to declare income tax to the tax authority, an increase of 83% from the previous year, which stood at 2,953.