HamCam Posted August 21, 2008 Report Share Posted August 21, 2008 We know we should have known better but never really thought about declaring the income on some residential properties to the powers that be. Was not making much if any profit but call us naive or even stupid it was never an issue for us until relatively recently when it came to light. Properties let out on standard 6 monthly agreements. While we have done a fair bit of research on the internet any advice would be much appreciated. At the outset can I confirm that we (my wife that is as the properties are in her name) will be contacting the appropriate tax office and highlighting the issue. Main questions we are asking ourselves are: - How far back can they go back bearing in mind some of the properties were purchased nearly 10 years ago ? - How much corrobative detail has to be provided as the records although pretty comprehensive are in some parts incomplete ? - Do not have full details of the historic mortgages on the properties so what happens then ? Have asked previous lenders but they are not being overly helpful. - We understand that surcharges apply (10% max ?) and interest on outstanding monies but are there any further penalties imposed ? - Should we approach the tax office ourselves or use a tax advisor/accountant ? As I say we recognise we are at fault but just want to sort it out. In the circumstances any guidance would be much appreciated. Look on the bright side someone has to balance Darling's budget deficit. Link to comment Share on other sites More sharing options...
plym77 Posted August 21, 2008 Report Share Posted August 21, 2008 Hi HamCam I would suggest that you do not go in to a Tax Office, hold your hands up and wait for the fall out! You would be far better speaking with a tax adviser. A tax adviser will be able to assist you with maximising benefits, negotiation on penalties etc. Plus going forward can point you in the right direction as to how to minimise your exposure, whether capital or income taxes. Yes, the preparation of this work will costs you money, but you could be risking potentially higher assessments because you don't know where you can maximise, mitigate and negotiate. As this is undeclared income you would be best to have all of the tax returns prepared and assessed voluntarily. This could help to mitigate penalties that could be payable. I appreciate that as a tax adviser this may appear bias, and it is of course your choice, but a knowledgeable assistance in this circumstance really is the best policy. Yes, you will be charged for the work, but do remember that the fees are tax deductible and you have the comfort to know that you have an experts help. If you would like a quote to assist with this work, please feel free to contact me on sherena.glanton@target-accountants.com. I am a chartered tax adviser and property tax specialist. I will be away on annual leave next week but could respond when I return. Best wishes Sherena Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 21, 2008 Report Share Posted August 21, 2008 If i were you i would be giving Sherena a call and quickly I thought max penalty was 100% NOT 10 % The Rodent Link to comment Share on other sites More sharing options...
Trenners Posted August 22, 2008 Report Share Posted August 22, 2008 Hi, I totally agree with rodent - get on the phone to Sherena ASAP. The Inland Revenue are really clamping down now on "landlord tax dodgers". I have just been asked to provide the Inland Revenue with the names and addresses of EVERY landlord that I have done business with over the last 12 months including those landlords that used my agency for a "let only" service. I wonder why they would want the name and address information? Get professional advise quickly so that you can minimise the tax payments and penalties. Sherena is definitely expert in this area. Good luck (but I hope you won't need it) Mark Link to comment Share on other sites More sharing options...
Melboy Posted August 22, 2008 Report Share Posted August 22, 2008 I can personally recommend Shereena and in your case you need a Tax Accountant.... right now! Any accountant fee's will be more than off-set by the savings they can make on your tax return AND more to the point the IR will accept a signed off Accountant tax return much more readily than your own. Hey! Mark Trenners........when I enquired 2 months about a "let only-find me a Tenant" service for my flat your colleague said you don't do that. Mel. Link to comment Share on other sites More sharing options...
Trenners Posted August 22, 2008 Report Share Posted August 22, 2008 Hi Mel, We don't do a let only service usually ..... but we would have done it for you .... if you had asked me ...... although I suspect that you don't need me to find you a tenant! Let me know if you are still looking though, Best Wishes Mark Link to comment Share on other sites More sharing options...
Melboy Posted August 23, 2008 Report Share Posted August 23, 2008 Hi Mel, We don't do a let only service usually ..... but we would have done it for you .... if you had asked me ...... although I suspect that you don't need me to find you a tenant! Let me know if you are still looking though, Best Wishes Mark I could be contacting you sooner than you think Mark...... I'll let you know in a couple of weeks. Ground floor 1 bed flat in des res area of Middleleaze. Private sunny Garden. Parking 2 cars. Neutral decor etc. £465 pcm Link to comment Share on other sites More sharing options...
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