Tax Return 3 years late

andyburn

A relative of mine has just realised that they should have filed a tax return for the last 3 years for a house they've been renting out.

They plan to fill in the forms for the past three years in the next couple of days (this years is done and in). Does anybody know what kind of fine/interest charges/whatever can they expect for filing it so late?

Many thanks!

mswannabe_2

carvell wrote: »

A relative of mine has just realised that they should have filed a tax return for the last 3 years for a house they've been renting out.

They plan to fill in the forms for the past three years in the next couple of days (this years is done and in). Does anybody know what kind of fine/interest charges/whatever can they expect for filing it so late?

Many thanks!

Did HMRC request your friend fill in the tax returns 3 years ago or was it a recent request. If only a recent request, no interest will be payable. If 3 years ago, I wouldn't wanna be in your friends shoes:eek: as interest and penalties will be payable.

andyburn

There was no request from the inland revenue.

She has been renting a house out for the last 3 years as well as being employed on PAYE, and it's only just occured to her that she should have been declaring the money she's been making from the house on a tax return.

mswannabe_2

carvell wrote: »

There was no request from the inland revenue.

She has been renting a house out for the last 3 years as well as being employed on PAYE, and it's only just occured to her that she should have been declaring the money she's been making from the house on a tax return.

IMO there's nothing to worry about then. Something similar happened to us while renting a property out. We were renting out for 4 years before HMRC contacted us to advise that we must submit annual returns. They didn't charge interest on previous years income though. Now that your relative has submitted a return, chances are HMRC will make enquiries on the year that rental began. Once your relative answers this enquiry, HMRC will forward returns for the years that any rental income was received and give a deadline for completion of previous years returns.

jennifernil

The onus is on the taxpayer to declare untaxed income, so not being sent a return to fill in is not a valid excuse as far as I understand. This does not mean that she will be penalised, only that she could be.

Stuart_Bellamy

You should submit the returns asap and then see if they charge any penalties or interest. It really will depend on who's desk they land on.

Interest and penalties are only charged if tax is actually outstanding for the earlier years.