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Question about Tax liability
bionic_banjo
Posts: 61 Forumite
I have a colleague who let their furnished house(ex-main home) out at a loss to a family friend's daughter for the last 4 years. As the loss they are carrying is now nearly £200 per month considering mortgage and insurance costs alone, they never declared the income for tax because it would just have been a paperwork exercise and they never got time to get it done albeit they have kept all receipts for works and improvements.
Four years on my colleague has landed a decent job and will go up to higher rate tax and they know a self assessment form will probably arrive in the post from now on. They know they will have to declare the letting but are nervous about telling the tax man about the previous years. Should they declare the previous years?
Do you think the tax man will fine them for not declaring a loss???
Grateful for your opinions:cool:
Four years on my colleague has landed a decent job and will go up to higher rate tax and they know a self assessment form will probably arrive in the post from now on. They know they will have to declare the letting but are nervous about telling the tax man about the previous years. Should they declare the previous years?
Do you think the tax man will fine them for not declaring a loss???
Grateful for your opinions:cool:
0
Comments
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Two comments:
No the tax man will not fine them for not declaring a loss, but he might be minded to fine them for not making a return.
Given that it was making a loss and therefore no tax was payable, what is the excuse for not making the return?A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
They have never been sent a self assessment form before. They never bothered sorting all the paperwork out because they work like a maniac and commute 4 hours a day. Weekends are spent looking after elderly relatives.0
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The obligation is on them to tell the revenue not the other way round.bionic_banjo wrote: »They have never been sent a self assessment form before. They never bothered sorting all the paperwork out because they work like a maniac and commute 4 hours a day. Weekends are spent looking after elderly relatives.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
Noted, but to put into context, how many Ebayers & car booters declare their extra income I wonder? And that type of income comes without the outgoings of morgage & insurance!
I told them at lunch to pass it all to an experienced accountant.0
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