Messed up bad with tax returns. Need some advice

jimmo

Tommyt wrote: »

Thanks Zyguat,

Having done further calculations my taxable income would never have exceeded my personal allowance in any year. I'm assuming I still have to make a declaration though? God this is going to be so frustrating if I get slapped with a big fine over literally nothing. Ah well, teach me a lesson I guess.

Why? What offences do you think you may have committed?
Here is the contents page from HMRC’s Compliance Handbook covering penalties and the only 2 of possible interest here are numbered 6000 and7000.

http://www.hmrc.gov.uk/manuals/chmanual/index.htm

Failure to file on time requires that HMRC have issued a Return (or Notice to File).
As they haven’t issued a Return you cannot possibly have failed to file on time.

Failure to Notify requires that you are required to notify something and for Income Tax purposes that something is liability to Income Tax.
As long as you are comfortable that you are not liable you cannot have failed to notify.
See this

http://www.hmrc.gov.uk/manuals/chmanual/CH71220.htm

As regards you being an overseas landlord either your tenants, if they believe they are paying you, or your parents, if they are acting as your agents albeit unpaid, have failed to deduct Income Tax from your rent and the person responsible has failed to notify.
However their penalty will be limited to the amount of tax lost as a result of their failure.
As you are not liable the red tape may be that your payer should take tax from you, pass it on to HMRC and then HMRC repay you the fact is that the tax lost is nil and the payer’s penalty will be nil.

It would probably be wise to sort this mess out and get things on a correct footing but bear in mind that each and every person involved could find computer generated penalty notices dropping through the letter box. However, the net result will be that the penalty notices will all be cancelled once you have everything on a even keel.
If you haven’t already done so, this could be an opportunity for you to consider the potential Capital Gains Tax issues that may face you when you eventually sell the property.
Probably better to face the music now, come out with no penalties and have good records available when you sell rather than risk having to do it all later.

s20544

By completing HMRC R43 form I think you might be able to declare your UK rental income for past years . . . . and perhaps avoid fines. The form is quite short and easy to complete

John_Pierpoint

jimmo wrote: »

If you haven’t already done so, this could be an opportunity for you to consider the potential Capital Gains Tax issues that may face you when you eventually sell the property.
Probably better to face the music now, come out with no penalties and have good records available when you sell rather than risk having to do it all later.

Do foreign residents pay Capital Gains Tax ?

I would think the original poster's main concerns should be
The tax system in the adopted country of residence.
The decision on the "best" place to keep accumulated wealth in the future.

Edit: I think I have found the CGT answer in here on the assumption that being a landlord is not a trade ?

http://www.hm-treasury.gov.uk/d/consult_condoc_statutory_residence.pdf

http://www.murrayharcourt.com/you-think-you-are-non-uk-resident-for-tax-do-you-maybe-not-after-6-april-2013/