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Didn't declare tax on rental income

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  • mlz1413
    mlz1413 Posts: 2,894 Forumite
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    ManicMum wrote: »
    easier said than done. Part of me wants to but not sure I could not look guilty when they tell me someone has dobbed them in. Sure it will catch up with them eventually.

    Do HMRC take anonymous letters seriously?

    If you give enough detail but not your name would that flag an alert to investigate?

    And why would you look guilty? these people are using schools, doctors, nhs, police service and want the fire service on call - then paying all the tax due is part of that.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    mlz1413 wrote: »
    Do HMRC take anonymous letters seriously?

    If you give enough detail but not your name would that flag an alert to investigate?

    And why would you look guilty? these people are using schools, doctors, nhs, police service and want the fire service on call - then paying all the tax due is part of that.

    There is hot line for tip offs.
  • RobertoMoir
    RobertoMoir Posts: 3,458 Forumite
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    ManicMum wrote: »
    easier said than done. Part of me wants to but not sure I could not look guilty when they tell me someone has dobbed them in. Sure it will catch up with them eventually.

    Probably. If you're not going to turn them in yourself then best to forget about it, worrying about stuff like that is a good way to end up more bitter and twisted than a lemon flavoured corkscrew.
    If you don't stand for something, you'll fall for anything
  • FraudBuster
    FraudBuster Posts: 931 Forumite
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    Thrugelmir wrote: »
    There is hot line for tip offs.

    Reporting Tax Evasion

    http://www.hmrc.gov.uk/tax-evasion/
  • chappers
    chappers Posts: 2,988 Forumite
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    ManicMum wrote: »
    I've got 2 mates who don't declare and one has several properties. It makes me mad as I am honest but what can you do? Their lookout. One says they don't care and the other says they don't bother with such things. In all other ways they are decent people and their attitude does surprise me. There must be loads of people out there doing the same.

    They will get caught eventually.

    My friends Dad has been renting properties for over 35 years and has built up a portfolio of over 40 properties over the years, he does everything above board apart from the fact he has never declared any income from the properties.
    About 3-4 years ago HMRC caught up with him and demanded nearly £500k in tax he initially had to pay them £250K to get them off his back whilst his accountant submitted his accounts the tax has been mittigated to around £350K and his accountants bills run into the 10s of thousands, I'
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
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    Not legally.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • DawnW
    DawnW Posts: 7,440 Forumite
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    remember that expenses such as gas certificates, landlord's insurance, membership of NLA or similar organisation are also tax deductable. I doubt if many (honest) LLs owning just one house or flat end up paying very much in tax. Mine worked out at about £130 for the year on a 3 bed house in a good area. My OH's bill (as it is jointly owned, we both have to do the self assessment) was a few pounds higher than mine - and he earns quite a bit less :rotfl:

    I am sure there is a very good reason for this, but we found it totally confusing. The look on his face was funny though!
  • mlz1413
    mlz1413 Posts: 2,894 Forumite
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    moneysavingjunior wrote: »
    hi folks,
    my parents came to live with me two years ago and put their property on rent. We were not aware of having to declare rental income and the rental income covers less than half of the existing mortgage. they have the LL insurance, gas certs are all in place. however not completed a self assessment. the contract was renewed on 15th Jan 2010. Would they be able to work from this date?

    If they make a loss no tax is due, also losses are carried forward each year so can be used against future profits.

    So its probably worth them filing all the returns due.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    mlz1413 wrote: »
    If they make a loss no tax is due, also losses are carried forward each year so can be used against future profits.

    So its probably worth them filing all the returns due.

    Still a fine for non filing of self assessment forms.
  • mlz1413
    mlz1413 Posts: 2,894 Forumite
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    Thrugelmir wrote: »
    Still a fine for non filing of self assessment forms.

    But worth it to be doing things correctly and they can probably register more losses than £100 if the rent is half the mortgage - although MS JR doesn't say if that interest only.
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