Help Needed Urgently

[Newbie88]

Hi,

I'm new to the property game so please be kind to me.

Nearly five years ago my father gave me a flat he owned 100% with no mortgage (worth about £90,000). I decided to rent it out at £500 pcm. Sadly two months ago my father died and has left me another property also with no mortgage (worth about £65,000). I have just got a tenant into that property paying £400 pcm. Now I know that this is not the thing to do but I've not being paying any tax on the earnings on the first property for nearly five years. I now want to do things the right way and not have the HMRC knocking at my door. I'm more than happy to pay tax (although no more than I need too) and I admit I've been young and foolish.

I've had advice off a landlord friend of mine who says I should start a fresh and set up a limited company and place both properties into it.

So what I'm looking for is advice from people like yourselves who know how to do this type of thing professionally.

Should my first port of call be with HMRC, an accountant or a mortgage advisor?

Any advise would be greatly welcome.

Many Thanks

[Richlist]

An accountant.......who will smooth things over with HMRC for you and keep your fines and penalties to a minimum.

[Melboy]

An accountant. Do not form a ltd. company and anyway it is far to late for that option.

An accountant will ensure that all tax relief claims are dealt with during your period of non declaration and not only that a registered accountant has far more clout with HMRC than any private individual.

[Chestnut]

Agree! You need an accountant to straighten you out with HMRC.

Meantime, and after, you can help yourself by starting spreadsheets (lists) of all your running costs for each year past and onward.

The accountant will want this information to sort out what costs can be deducted for tax.

Once HMRC are happy with your past, and if you don't need mortgages, you may wish to consider doing your future annual Property Tax returns yourself, as many of us do.