Robin Wales, mayor of Newham, has written to the Chancellor saying that up to 13,000 of the 27,000 registered landlords in the borough may have failed to pay all the tax due from rental payments. He says estimates suggest as much as £183m in tax could be owed by landlords across the capital.

The letter stated: ‘It is our understanding that, to date, up to 13,000 Newham landlords are of interest to HMRC, where there are discrepancies between declared income and our records, with potentially significant financial implication for the exchequer.

‘At a time when local authorities are experiencing savage cuts and Newham alone has had half its grant funding cut; possible tax evasion on this scale takes money from vital public services.’

Newham introduced its private rented sector (PRS) licensing scheme in 2013 and now requires Newham landlords to licence any property offered for private rent. It is scheduled to end in December, and under restrictions introduced in 2015, the council must re-apply to the government for permission to continue the work over the next five years.

HMRC said it did not recognise the figure of 13,000 landlords put to it by the council.
A spokesman said: ‘We are working with the London Borough of Newham as part of the Let Property Campaign [HMRC tax disclosure scheme].

‘This work has generated £115m in additional and previously unpaid tax and interest.’