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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5933
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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We are currently letting out our former family home to my

This answer was rated:

Hi we are currently letting out our former family home to my son and his family. We only charge £650 per month of which £460 covers the mortgage, landlords insurance and boiler cover.
JA: Have you talked to a tax professional about this?
Customer: Not as yet We’ve been made aware that we should be declaring this even though there is only a modest profit
JA: Anything else you want the Accountant to know before I connect you?
Customer: We’ve heard about the Let Properties Campaign and think we need to take advantage of this

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Please advise for how long you have been letting out your former family home to your son and his family.

Many thanks

Customer: replied 1 month ago.
Since 2006
Customer: replied 1 month ago.
I’m happy to continue online rather than a telephone conversation
Customer: replied 1 month ago.
We just need to know if we’re liable to pay tax, how much it would be, and the best way to declare this

Thank you for your reply.

Is the property let furnished?

Have you managed to prepare property accounts for each tax year the property has been let? If not, your starting point is have the accounts ready.

Then write to HMRC and express your wish to take part in the Let Property Campaign.

More information on this can be found here

https://www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure

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.

Without knowing the profit, it is difficult to advise to tax and penalties payable.

Customer: replied 1 month ago.
It’s let out unfurnished and we’ve never done any accounts as didn’t know we had to
Customer: replied 1 month ago.
Do we need an accountant then?
Customer: replied 1 month ago.
Will HMRC need accounts going back to 2006?
Customer: replied 1 month ago.
Will we be liable to penalties?
Customer: replied 1 month ago.
Where do we start???

Thank you for your reply.

You need need the services of an accountant to handle your case.

HMRC may go back to the start of rental period.

I advise you to reconstruct accounts in the first place.

I am happy to help you here by offereing a premium service at extra cost once you have made a start. Alternatively, look for a local accountant in your area if you feel dealing with HMRC is too stressful.

I hope this is helpful.

Customer: replied 1 month ago.
Ok thank you for your advice

Thank you for yourreply.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service positively/accept the service I have provided to ensure I get credited for it by Just Answer.

taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 month ago.
Is there any way to find out if HMRC will go back to 2006?

Thank you for your reply.

As long as the enquiry remains open, HMRC can go back to 2006.

I would advise you prepare accounts. In earlier years, you may have spent sums on repairs and maintenance that are chargeable and thereby reducing the profit.