Not declaring income from rented property

Kynthia

A friend of mine had a property they rented out a few years ago and is now living in it. Somehow the HRMC found out and she got a letter out of the blue. I think it was a genuine mistake on her part and she is a single parent without much money. They allowed her to fill in three retrospective tax return forms, which I helped her with, using estimated figures. They then charged her the the unpaid tax and some extra as a pentalty. Your friend is unlikely to go to prison but it will cost her if she's caught.

tbs624

Can't jiggle along with this line of "genuine mistake" from anyone

It's irrelevant whether or not they are absolutely coining it or a single parent struggling for money

You have income - HMRC want to know about it.

As I said previously, a very basic google can bring up guidance that will prevent "mistakes".

It's strange how many people can use t'internet to find the best deal on their new kitchen, their holiday or their "entitlement" to this that and the other and yet their fingers seem unable to type in the search terms to ascertain their potential tax liability when letting out property.

tbs624

Eton_Rifle wrote: »

Since you claim to be this woman's friend (although the subtext has a different message) then using all the information above, I would persist in convincing her rather than furtively betraying your friendship.
For what it's evidently worth.

The friendship is perhaps flawed on both sides.

Asking a friend to assist with your accounts for a separate business after having divulged that you simultaneously think it fine and dandy to fail to declare income from rental properties (plural) puts the friend in a very awkward position.