Penalties for not declaring rental income

TheSpectator

Sarahspangles said:

Dazed_and_C0nfused said:

Sarahspangles said:

Dazed_and_C0nfused said:

Sarahspangles said:

TheSpectator said:

Sarahspangles said:

.

The link I shared allows you to proactively disclose that you haven’t been submitting returns, in return for some leniency on the penalties.

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

But you can't have a penalty if you owe no tax on a disclosure.

Ultimately if OP meets the criteria for Self Assessment they should be submitting returns. What is the rental turnover and net profit - that is the determining factor.

The penalties are for failing to submit tax returns. 

But the op hasn't said they have been asked to submit returns.

If someone has untaxed income from property, they either need to submit a Self Assessment return or if their income is <£2,500 contact HMRC, which I assume allows HMRC to decide whether to offer Simple Assessment. If they needed to send a return, the late penalty applies.

Have a read of this,

A late filing penalty can only be imposed if a return or notice to file a return has been issued and the return is late.

https://taxaid.org.uk/guides/taxpayers/tax-returns/late-tax-returns

If you register for self assessment late (within three months of the filing deadline or later), the deadline is extended to three months from the date of issue of the return. The revised due date will be shown on the Tax Return/notice to file that you are sent.

So instead they pay a Failure to Notify penalty?

We are going round in circles. FTN penalties are based on tax owing. If no tax is due then do FTN penalty.....as said a few posts back.

Dazed_and_C0nfused

TheSpectator said:

Sarahspangles said:

Dazed_and_C0nfused said:

Sarahspangles said:

Dazed_and_C0nfused said:

Sarahspangles said:

TheSpectator said:

Sarahspangles said:

.

The link I shared allows you to proactively disclose that you haven’t been submitting returns, in return for some leniency on the penalties.

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

But you can't have a penalty if you owe no tax on a disclosure.

Ultimately if OP meets the criteria for Self Assessment they should be submitting returns. What is the rental turnover and net profit - that is the determining factor.

The penalties are for failing to submit tax returns. 

But the op hasn't said they have been asked to submit returns.

If someone has untaxed income from property, they either need to submit a Self Assessment return or if their income is <£2,500 contact HMRC, which I assume allows HMRC to decide whether to offer Simple Assessment. If they needed to send a return, the late penalty applies.

Have a read of this,

A late filing penalty can only be imposed if a return or notice to file a return has been issued and the return is late.

https://taxaid.org.uk/guides/taxpayers/tax-returns/late-tax-returns

If you register for self assessment late (within three months of the filing deadline or later), the deadline is extended to three months from the date of issue of the return. The revised due date will be shown on the Tax Return/notice to file that you are sent.

So instead they pay a Failure to Notify penalty?

We are going round in circles. FTN penalties are based on tax owing. If no tax is due then do FTN penalty.....as said a few posts back.

Says it all really.

The situation where the op could get a penalty is it a return was issued and they then didn't file it on time.  A penalty would then be charged.  And not owing any tax won't change that.