Technically probate is still going through but my father died in February
More worried about the royalties though
Property is to be shared ownership with my sister
Dave, thank you for your reply.
As stated in your statement, you never thought about tax because of fairly meagre royalties.. You can put this right.
My advice to you is that you should register for self-assessment. This would provide HMRC with the information they need to set up the right records for you.
You can register online for self-assessment and the link is
Please tick the box against "I have been getting untaxed income that cannot be collected through my PAYE tax code" and state the start date.
You will be issued with a Unique Tax reference number (10 digits e.g. 12345 67890) and you use this number to correspond with HMRC in future.
You will receive your UTR No and normally the first tax return for completion in the post.
In the meantime, prepare your accounts showing royalties income and associated costs. Please make a note of tax suffered at source if any.
You will then file a tax return and show royalties income (casual income) in the main section of your tax return in box 16 under the heading "Other UK income not included on supplementary pages. (tax return Page TR 3). Here is a link to the tax return. Form SA100 http://www.hmrc.gov.uk/forms/sa100.pdf
As far as rental income from inherited property is concerned, you should declare your share of this by completing supplementary pages SA105 – UK property of tax return.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Although I did initially think the royalties were taxed at source I realised about six years ago they were not but not being sent a tax return I have been sticking my head in the sand then getting too worried to do anything to get one
I have earned about 3K a year from the publishers but 8K per year in photocopying royalties for about 10 years
More information on taxation of royalties can be found here
Is there not an advisable approach to minimise the severity with which this will be received and thus penalties applied?
Should I declare for previous years if so for how long?
Dave, thank you for your reply.First of all, you should bear in mind that you are making voluntary disclosure as opposed to HMRC instigating an enquiry. This would help you reduce the penalties.You may find some royalty income has been taxed at source. You should go back to the publishers and seek confirmation of payments and tax deductions.As no HMRC determination has been made to person's routine self-assessment, the time limit would be 4 years from the end of assessment.If this is deemed "discovery assessment" where loss of tax due to careless behaviour the time limit is 6 years from the end of the year of assessment. In worst scenario HMRC could go back all ten years.More information on this can be found here
HMRC runs campaigns that are designed to help people bring their tax affairs up to date. More information on this can be found here
My advice would be to come clean and declare all..
I hope this is helpful