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HMRC will start taking money from landlord bank accounts if they owe tax but won't pay.
HMRC is reviving Direct Recovery of Debts powers that were put on the back burner during the COVID pandemic.
The law obliges banks and building societies to hand over cash directly from a taxpayer's account, savings or ISA if requested.
HMRC insists the power will be used against a few landlords, and only then, after a detailed case review has ruled out any other way of recouping unpaid tax.
The measure is one of many ways the government is considering to improve cash flow.
HMRC and the Treasury reckon the gap between tax owed and tax paid was around £46 billion in 2023-24 - or 5.3 per cent of the total tax HMRC believes is owed.
HMRC believes 60 per cent of the tax gap is owed by small companies and businesses.
This untapped money prompted Chancellor Rachel Reeves to try to close the gap by raising £7.5 billion from taxpayers who owe money but won't pay, mainly by recruiting hundreds of extra compliance staff.
Direct recovery powers were introduced in 2015 and only used until the COVID pandemic, when 19 demands involving nearly £320,000 were made to banks and building societies.
Landlords most at risk from direct recovery are those who:
Before taking the payment, HMRC will send a debt collector to a taxpayer's home or workplace to discuss arrangements for paying the debt and ensuring the taxpayer is not a vulnerable person.
If a taxpayer complains that the amount owed is wrong, a 30-day stay is put on the direct recovery.
An HMRC spokesman said: "Some people experience genuine financial difficulty paying their tax. This often happens when their life is affected by a major personal event or their business develops a problem. HMRC routinely takes a sympathetic approach to those who need additional support."
The measure has provoked concern among tax experts. The Low Income Tax Reform Group (LITRG) is seeking confirmation from HMRC on how vulnerable taxpayers are identified and the level of support that they can expect.
HMRC has published a report on how Direct Recovery of Debts works
Experts disagree that the tax gap is so big. HMRC calculates the figure. Every year, the amount between what HMRC projects should be paid in tax and the amount collected is several billion pounds.
However, no one knows for sure how much unpaid tax swells the gap. Evidence suggests that the government may be underestimating by several billion pounds the amount of income hidden offshore, tax evasion by online retail, and non-compliance amongst the largest and wealthiest taxpayers.