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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14441
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My wife and I left the UK in 2006 after I lost my job and

Customer Question

Hello,
My wife and I left the UK in 2006 after I lost my job and moved to Pakistan where i looked for a job for few years. We rented our flat in the UK and it has been on rent ever since. We also paid heavily for major structural repairs as well on the property as well.I am UK resident and my wife a UK citizen from 2006 onwards. We have not been doing our tax assessment as the letting agency was charging an extra fee as we had to declare we were not filing.
We have now received a letter from the UK Inland revenue saying there are arrears and penalties on my wifes account for not doing our self assessment as we were earning income from the flat and that we need to fill out self assessments from before.
The penalties are about 14,000 GPB which is something we cannot afford as we have a child in college now as well and earning in Pakistan the currency is weak relative to the pound.
I understand we have not paid taxes which is due to our negligence, but we havent' received any correspondence for inland revenue until now.
grateful for advice...
A Haq
Submitted: 2 months ago.
Category: Tax
Expert:  Sam replied 2 months ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 2 months ago.

Hi

Thanks for your patience

I am afraid it was your responsibility to contact HMRC that you not only had left the Uk but had started to receive rental income and as you had to sign a declaration with the letting agency this meant they had to deduct tax from you (it was not an additional fee but tax) as you did not have the right to receive the rents gross without deduction of tax as you had not registered for the non resident landlord scheme, so how were HMRC supposed to know where you were ? And that you had rental income ?

Its only know that HMRC have become aware that you did have rental income that they have contacted you (probably from a review of the letting agency) so I am afraid there may not be any tax due as this would appear to have been deducted by the letting agency and paid over to HMRC but the fact you did not file self assesment tax returns

You need to complete these to stop the penalties getting bigger and IF yhou do not owe any tax you could try and appeal that the penalties outweigh the size of the tax actually due so HMRC have lost nothing so would they reduce them on this basis

Thanks

Sam