Please Help - What can he do?

LandyAndy

I'm an accountant and I'm going to echo everyone else's advice. See an accountant. I imagine your case is quite simple and will be something any accountant will have seen before. You will need to find as many records as you can going back over the 9 years (tenancy agreements, if there are any, bank statements, bills for maintenance, mortgage statements, in fact anything relating to the properties). I doubt HMRC would insist on full immediate payment of late tax, although there may well be penalties and interest.

JanetRutherford

Sorry to confuse, but my head isn't too clear these days with the anti-depressants I am taking, not that that is any kind of defence or excuse. Just to clarify:

10 Years ago (2000) we were forced to buy the house we were renting because the owner was selling up. After the conversion into flats we have since (early 2001), for the last 8 1/2 - 9 years, been renting those two flats; with us living in the other (third) flat (2001 - 2009). 2 Years ago (2008) we sold the ground floor flat (that we ended up living in) because of money troubles and bought a smaller flat elsewhere. Although we should of moved out in 2008 we were allowed to stay until 2009 because we sold to a friend and because buying the other flat elsewhere took time to renovate and move into.

When I say "lived in my HOUSE for 8 years" I mean as a HOUSE we then completely owned, as opposed to a rented flat from the previous landlord.

We bought the house because at that time we were offered money to leave, but decided it was much cheaper to buy. We were in a better position then to get the mortgage. Later my husband became ill and was forced onto Incapacity Benefits.

Hope that clears that up. Told you I wasn't an accountant! Speaking of which, I am going to see one next week.

Thanks for all your advices.

Yours Sincerely

Janet

Gwhiz

So just to clarify - you were not forced to buy, you chose to buy?

tbs624

OP - you are presumably an adult and yet you seem to be saying that it's someone else "fault " that you bought the property (presumably jointly with your OH) and now it's your OH's fault that the books haven't been done/HMRC accounted to for the last x years?

Have you( or your OH) dealt with the other LL obligations on gas safety certs and tenancy deposits etc?

Were the conversions done properly , with Building Control informed?

Fire Safety issues complied with?

Sign up to a national LL association or to Tessa Shepperson's LL Law (tax deductible membership fees and much useful advice, plus discount on LL insurances).

As so many of the other responders have said, get an accountant to help you get the books in order and 'fess up to HMRC asap.Regarding a comment by a previous poster, please note that you are *extremely unlikely* to get a prison sentence in these circumstances: fines plus payment of any tax owed is the most likely result but, as someone else has said, declaring it yourself before you are chased up by HMRC is much the best route to go.

The HMRC's PIM (property income manual- google it) gives you all the info you need , there is also their property rental toolkit here and there is a more basic guide here

If you don't feel well enough to get things underway then get a mate and/or your OH to get things kick started. You may find that you feel a whole lot better when you are on the way to the situation being sorted out. You are not the first to have undeclared rental income and you won't be the last.

Check whether there is a local LL association - they may be able to recommend an accountant who specifically deals with property rentals.

JanetRutherford

Thanks for the valuable advices.

When I say "forced" I mean we were offered money to leave, which was a small amount back then that would not of lasted long especially with a child, else we had to find the money (a mortgage) to stay; so forced in the sense of a life changing decision.

As far as I am aware my husband reassures me that all other things to do with the house and flat rentings etc were done above board. He is saying it is only the fact he has not told the tax man of the rentings is the only thing outstanding.

Ironically, he allowed the tenants to pay council tax in their names and therefore now regrets that because he is now worried that one of those past tenants may go to the tax man before he does. That's how this all came about and why he was forced to tell me everything; at least I hope he is now telling me everything.

Yours Sincerely

Janet

Hollie_Rose_2

Gwhiz wrote: »

Slightly off topic but WHY were you forced to buy the house you were renting? Why not rent another property?

Something does not quite add up here!!!

Couldn't agree more!

voytovdwiof

I think you're all ignoring the fact that moving when you're settled with a child isn't a decision you make lightly. They weren't "forced" in that they had to buy it or they'd be killed, but if they wanted to suffer no upheaval and/or problems associated with moving, they had to buy it, and the choice they made was to avoid the moving. I don't see why it matters though, she came for advice and has got it, whether or not you believe she made the wrong decision 10 years ago (!!!) is of little consequence.

bris

Do you realise you may have a rather large tax bill for the ground floor flat you sold. You might want to mention this to your accountant.

JanetRutherford

Hi Bris,

I do not follow what you mean? We were living in that flat so surely it is not classed as a rented property? Am I missing something?

Thanks Voytovdwiof, that is exactly the case.

Yours Sincerely

Janet

Gwhiz

voytovdwiof wrote: »

I think you're all ignoring the fact that moving when you're settled with a child isn't a decision you make lightly. They weren't "forced" in that they had to buy it or they'd be killed, but if they wanted to suffer no upheaval and/or problems associated with moving, they had to buy it, and the choice they made was to avoid the moving. I don't see why it matters though, she came for advice and has got it, whether or not you believe she made the wrong decision 10 years ago (!!!) is of little consequence.

Saying you were "forced" to sell implies no option and no responsibility for the decision. The words used shed some light on attitude of OP and of portraying a picture that's not quite accurate. I'd say it's relevant to the current situation.

Edited to add.... if it's of no consequence, why did OP mention this.