Self Assesment on Rental

Olivia111 · 31 January 2015 at 3:25PM

Hi All,

Please could someone help me, I was speaking to a golf friend who told me that his brother, son and himself bought a house in 2012 and spent £30,000 doing it up. They started renting it out in May 2013 so they should be doing a return. Like a lot of people new to this they did not realise they had to do a return.

The golf friend is self employed and his accountant has already submitted it, I wont tell you what his accountant said when he brought this up with him. The other two are PAYE.

They will have a loss the first year not sure about amount. What are there options going forward with HMRC, will they be fined, should they contact another accountant to get advice are even send HMRC a letter explaining there situation.

Any help would be great.

Olivia

chrismac1 · 31 January 2015 at 4:20PM

Firstly, this is really no big deal to the accountant. He or she has until 31 Jan 16 to re-submit the tax return and this is quite common. I re-submit between 5 and 10 every year and in my experience it does not make a single bit of difference as to how likely a check or enquiry from HMRC is.

The other 2 should register for self-assessment pronto. Although strictly they are late in registering I doubt if they will be fined. What is certain is that if HMRC find out about the rental they will be fined, and what is also certain is that any penalty where they have volunteered the information will be lower than one where they have not.

Olivia111 · 31 January 2015 at 9:47PM

Hi Chrismac

Thanks for the advice I will pass it on and cheers.

Regards

Olivia

Self Assesment on Rental

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