Property tax advice please?

Leanne1812

Hello forum,

I am looking for someone to advise me on the tax implications from not declaring rental income. Yesterday I received a letter from HRMC indicating they thought I may be earning rental income but had no records of this. I thought as the income is low and I do not work that I did not need to declare. After looking at HRMC website and various other tax sites I realise I was very wrong. Now I am panicking that i may be in deep trouble and facing penalties and a big bill.

I have looked to find a property tax accountant in Scotland but have not found anything online that seems helpful to my situation. Are there any members who can help me or put me in touch with an accountant who understands property tax?

Many thanks for any replies

Leanne.

fengirl_2

First of all, are you sure that your profits from letting are enough to make you liable to tax? You need to take into account all the expenses in connection with the letting, inlcuding mortgage interest. Then you have a tax free allowance of £6035 for the last tax year.

If there is a tax liability, the worse HMRC can do is charge you a penaly of 100% of the tax due, but this is normally reduced taking into account the size of the tax bill, how well you have coperated, how long this has been going on and whether they found you before you declared the income. In addition, interest is charged back to the sdate(s) on which the tax was originally due.

If you think you have a large tax bill takng into account the above, I would advise taking advice from a tax specialist who will be able to negotiate with HMRC on your behalf.