I’ve been looking after a house of multiple occupation for a few years and have been unaware of tax payments. I’ve been receiving the income from the property so I can pay the mortgage, fund its operation and also cover my costs. By chance I came across your website and then realised there are tax implications with a bedsit property. Seeing as I’ve not paid tax I’d like some advice on which way forward I need to go in this matter.

First the taxpayer needs to make a complete schedule of his rental income and his allowable rental expenses for each tax year (6 April to 5 April) since he started renting out the property. He should 'throw in' all the allowable expenses he can possibly think of. It is possible that in some tax years he has made a loss. Once this is done it can be seen whether he has received any net rental income on which he is liable to income tax.  A loss in one tax year could be used to offset against profits in a future tax year. If he has no other income then the net rental income may be covered by his income tax personal allowance. If, after all the above calculations, he has received net rental income on which he owes income tax to HMRC, then he needs to write to HMRC explaining himself. This will mitigate the penalties involved. One thing is worth pointing out, from the wording of the question, i.e. that he has been “looking after” the house. If he doesn't own the house, then the rental income is not his, and he has no problem at all.