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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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IN FEBUARY 2014 WE PURCHASED A PROPERTY IN ORDER DAUGHTER

Customer Question

IN FEBUARY 2014 WE PURCHASED A PROPERTY IN ORDER FOR OUR DAUGHTER AND HER TWO CHILDREN , A BOY AGED 19 AND A BOY AGED 15 TO HAVE HOME , WE DO CHARGE HER RENTAL AT A LOWER THAN NORMAL RENT OF £600.00 PER MONTH , I.E. £7,200 p.a. We ARE ENTIRELY RESPONSIBLE FOR REPAIRS AND MAINTENANCE AND IMPROVEMENTS TO DECOR ETC ; THE PROPERTY IS IN MY NAME AND THERE IS NO MORTGAGE.
WE ARE NOW CONCERNED ABOUT TAXATION ON THE INCOME FROM THE PROPERTY AND HAVN T NOTIFIED THE INLAND REVENUE REGARDING THE INCOME FROM THE PROPERTY .
REGARDS ***** ***** C WOLFE mother and owner
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

Many people with let property fail to tell HMRC so you aren't alone in that regard but don't be overly worried. All you need to do is straighten things out.

You should have registered for self-assessment within 6 months of the end of the 2013/14 tax year, ie by 6 October 2014.

You can either register using the online form here or find out if you can use the let property campaign here. You've only missed one tax return submission deadline, that for 2013/14. The 2015 tax return submission deadline is 31 January 2016. I'd be inclined to use the let property campaign if you can.

Take a look here for the types of expenses you can claim and here for information on the tax responsibilities. It is possible to have any tax due collected through your tax coding if you have a PAYE source of income and the income or profit is below a certain level.

There is information here on penalties for late notification which are realted to the tax due, if any.

I hope this helps but let me know if you have any further questions.