Have Tax Questions? Ask a Tax Expert for Answers ASAP
There is no need to post another question. I have asked for information here.
The rent I have received would have been approx £220 per month for 7yrs
Hi again.There are some notes on the Let Property Campaign here. Read the notes here too. If you haven't read them, then please do. This campaign gives you the chance to get yourself straight with HMRC on favourable terms. Provided you complete and submit the forms and pay any tax due, you won't get into trouble with HMRC. They just want things to be done properly. The people who work on the helpline are helpful in my experience so don't be afraid of asking questions if there is something you don't understand.Rental income is taxable and needs to be disclosed to HMRC even if the deductible expenses exceed the rentsIf you have difficulty with it, then you might consider having an accountant or tax adviser complete the online forms for you but you will have to pay for that. However, it is just a form filling exercise and provided you give all the necessary detail to an adviser, it won't take them long to do it.All you need to do is work out your rental income and deductible expenses for each tax year since you started to let the property, fill in the appropriate boxes, work out the tax, interest and penalty and when you have finished, submit the completed declaration to HMRC. The link I have you above has further links to tools to help you such as interest and penalty calculators to make the process easier. As long as you take your time with it, you will find it fairly straightforward.If you have no tax to pay, there can be no interest or penalty to pay. Whether you have any tax to pay depends on whether your rental income exceeded the deductible expenses for each tax year and what other income you had in each tax year. If expenses exceeded rental income in one year, you can carry forward that loss to the next year to offset against the next year's profit if there was one.I hope this helps but let me know if you have any further questions.