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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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As a teacher I have never filled in a tax return in my working

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As a teacher I have never filled in a tax return in my working life.
This is why I didn’t really think much initially about not doing so when I actually needed to.
Ie. when I began to earn some fairly meagre royalties for an educational title I have authored
I have been paying a substantial amount for my father’s care for years and sort of offset my guilt thinking the state should be paying. Perhaps I even deluded myself into thinking I was eligible for a tax allowance for this. Was I?
For whatever reason I’ve been a bit of an ostrich sticking my head in the sand.
Now that my father has died and I have inherited a flat with a rental income (no real resale value to speak of) I realise I am potentially in considerable trouble.
Should my wife be named on the deeds to the flat instead? How can I disclose now? Needless to say I am very stressed about all this and don’t know what to do for the best.
Hello and welcome to the site. Thank you for your question.

Please advise
- when did you inherit the flat and when did rental income commence?
- is the property in your sole name?

Many thanks

Customer: replied 3 years ago.

Technically probate is still going through but my father died in February

More worried about the royalties though

Customer: replied 3 years ago.

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

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.

Customer: replied 3 years ago.

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

Dave, thank you for your reply.

You would have received payment slips etc from the publishers to support your income and tax deduction if any.

Irrespective of whether they have been taxed at source or not, you should put the matter right by registering for self assessment.

More information on taxation of royalties can be found here

I hope this is helpful and answers your question.

Customer: replied 3 years ago.

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 and other Tax Specialists are ready to help you