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Tax on rental
Comments
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Op as suggested above, telling HMRC there is an error is financially so much better than them finding an error.Both ways you will have to pay any tax owed and interest on that.HMRC finding out will add penalties and they will start off assessing you at the market rate leaving you to fight it down to the correct amount. (Added as a FYI for other readers in case Op doesn't return).May you find your sister soon Helli.
Sleep well.0 -
As always, Being a LL has both legal and tax implications, assuming there is no tax to pay because the mortgage payments is/or are more than rent is naïve at best. HMRC will not care if that is the excuse, ignorance is not an excuse when it comes to tax.
Fill in a tax return, if not get an accountant to help you.
Money and family generally shouldn't mix as you've effectively been their charitable social LL for the last 18 years. great if you don't mind losing money and genuinely want to help them, but be mindful alot of BTL terms do exclude renting to own family members.
Being investigated by the HMRC is both costly, stressful and time consuming. If you don't have all the paperwork, you will have less grounds to haggle down the figure you owe.
You can run but you cannot hide:
https://www.taxation.co.uk/articles/hmrc-s-connect-computer-and-investigations
"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP1
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