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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4983
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I've let my property out since 2009 but never got around

Customer Question

Hello, I've let my property out since 2009 but never got around to registering for self-assessment. The property was mortgaged and I understand the majority of tax was offset by the mortgage interest so I don't think a huge amount of tax is due (this is partly why I never got around to it - though obviously that's not a legitimate defence!).
My question is, how much trouble will I be in if I declare this now, and how do I go about declaring it? Also, I'm aware that there is a six year limit for tax records, but will I need to provide returns for the full seven years?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.If you have never filed a tax return, then you should register for self assessment to enable you to file your tax returns and report rental income.You can register online and more information of how to register can be found herehttps://www.gov.uk/register-for-self-assessmentHMRC has been running Let Property Campaign to ensure landlords to come clean with undeclared rental income. You will find this article helpful and the link is herehttp://www.theguardian.com/money/2014/mar/15/landlords-hmrc-undeclared-lettings-income-tax If you make a voluntary disclose, you would certainly mitigate on penalty that would be otherwise applied for non disclosure of rental income. You should declare profit from letting UK property by completing tax return and supplementary pages SA105 - UK property.As far are previous years are concerned, you should write to HMRC and make a declaration. Also complete the Let Property Campaign Disclosure Form and you can download it herehttps://www.gov.uk/government/publications/let-property-campaign-disclosure-form You may be required to make disclosure from inception (2009). 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.
Customer: replied 1 year ago.
That's brilliant advice - and quite a relief! I'll certainly take advantage of the Let Property Campaign.Just one follow-up question if I may. I was previously registered for self assessments, but stopped sending them in 2006 when HMRC advised there was no need. Is my previous UTR number still valid or would I need to re-register from scratch?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.Your UTR number is ***** and use it for filing your tax returns and for any correspondence with HMRC. I hope this is helpful and answers your question.
Expert:  taxadvisor.uk replied 1 year ago.
A UTR number issued by HMRC remains your unique number for life. You should use it for all communication with HMRC. Please retain a copy of any correspondence with HMRC. I hope this is helpful and answers your question.If there are nomore issues I will appreciate if you would kindly rate/accept the service Iprovided to ensure I get credited for it by Just Answer.
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Customer: replied 1 year ago.
Perfect, thanks again!
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.Your reward of a bonus is greatly appreciated. Best wishes.