Let property campaign

Vwvento95G

Hello. 
Iv recently been issued a HMRC let property campaign issued letter in the post. 

I let my personal house out to a Tennant in 2012 because I'd moved out and was living with my then partner. The relationship ended and after the initial 6 months tenancy agreement ended I moved back into my personal house . 

As this was 2012 I'm unsure if I can ofsett any gains I made in  rental income against my full repayment mortgage or just the interest I paid. 

I also let my property out again in 2018 for 7 month when I moved in with my partner and after the 6 month initial tenancy agreement ended I decided to sell my property. 

I stupidly didn't declare any income gain. Approx £50 per month. 

Without going into how surprised I am at being pulled up for letting out my property on two occasions for around 13 months in total with gains of just £50 a month, I'm looking for advice.

I'm neither a conscious landlord or a conscious tax avoider. I let my house out simply so it wasn't empty.

Advice would be appreciated on how I go about obtaining information on the 2012 let. Can I claim against full mortgage or just the interest? My mortgage was on a variable rate would I need to contact mortgage provider to fund out the exact rate over those 6 months? My online banking doesn't go back so far. 

The 2018 let is a bit easier as online banking goes back that far. But what if any formula can I use to calculate tax amount to be paid. I really have no clue and a shove in the right direction would be great. 
Thanks 

anselld

You should probably seek help from an accountant.  A can of worms has been opened and unless you know what you are doing you are only likely to make things worse.  An accountant will advise you how to minimise tax and penalties.

jonnydeppiwish!

You only charged £50 rent? Plus it was only the interest part iirc

theartfullodger

Vwvento95G said:

Hello. 
Iv recently been issued a HMRC let property campaign issued letter in the post. 

I let my personal house out to a Tennant in 2012 because I'd moved out and was living with my then partner. The relationship ended and after the initial 6 months tenancy agreement ended I moved back into my personal house . 

As this was 2012 I'm unsure if I can ofsett any gains I made in  rental income against my full repayment mortgage or just the interest I paid. 

I also let my property out again in 2018 for 7 month when I moved in with my partner and after the 6 month initial tenancy agreement ended I decided to sell my property. 

I stupidly didn't declare any income gain. Approx £50 per month. 

Without going into how surprised I am at being pulled up for letting out my property on two occasions for around 13 months in total with gains of just £50 a month, I'm looking for advice.

I'm neither a conscious landlord or a conscious tax avoider. I let my house out simply so it wasn't empty.

Advice would be appreciated on how I go about obtaining information on the 2012 let. Can I claim against full mortgage or just the interest? My mortgage was on a variable rate would I need to contact mortgage provider to fund out the exact rate over those 6 months? My online banking doesn't go back so far. 

The 2018 let is a bit easier as online banking goes back that far. But what if any formula can I use to calculate tax amount to be paid. I really have no clue and a shove in the right direction would be great. 
Thanks 

Very pleased to hear tax "avoiders" continue to be found, traced & pursued.

So you weren't ""....a conscious landlord or a conscious tax avoider.    "" Sleep's amazing eh!

Best wishes to all.

Thrugelmir

3.3 If you do not have all the business records you need to make your disclosure

If your records are incomplete you should make your best estimate of the undisclosed income and gains and use this to make your disclosure.

HMRC may ask you to explain how you have worked out any estimates you have used, so you need to keep your calculations.

If you have your bank statements for the period of your disclosure they will probably help. If you do not have them HMRC recommends you contact your bank as soon as possible to get copies.

If you cannot get copy statements at all, you should work out your income by using more recent statements as a guide to your income and expenditure. HMRC may ask you to explain why you could not get copy statements.

If you have not kept proper business records you should begin to do so immediately. This is your opportunity to put things right from now on.

If HMRC finds in the future that you have failed to keep appropriate records, they can charge penalties of up to £3,000.

https://www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure

Speak to an accountant if you are floundering, They'll know how best to present your case. 

The HMRC aren't to disclose what they already know until you show your hand.