Hi all need help to fill Disclousure form which cleint had not diclare rental income since 2009 to 2017 below £5000 each year and HMRC told her to pay 20% is first time for me any advise will be appriciate.
Hi all need help to fill Disclousure form which cleint had not diclare rental income since 2009 to 2017 below £5000 each year and HMRC told her to pay 20% is first time for me any advise will be appriciate.
Thanks
I would disclose using the Let Property Campaign, you will need to include the interest on any tax owed for each year as well as the penalty of either 0%, 10% and 20% depending on the reasons why the income was not declared, HMRC would say 20% as it is the highest, but maybe offer 10% and see if this is accepted
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
Hi all need help to fill Disclousure form which cleint had not diclare rental income since 2009 to 2017 below £5000 each year and HMRC told her to pay 20% is first time for me any advise will be appriciate.
Thanks
I would disclose using the Let Property Campaign, you will need to include the interest on any tax owed for each year as well as the penalty of either 0%, 10% and 20% depending on the reasons why the income was not declared, HMRC would say 20% as it is the highest, but maybe offer 10% and see if this is accepted
I read it as Minaxi was looking to sub out the work.
Hi Minaxi
Long time no see.
Does your PII cover enable you to undertake this work? Thats the first thing to check.
Are you listed as agent for this person? Thats the second thing to sort if not.
There is not sufficient information in your initial request to really help any further.
Why was this under-declared? What was the rent from? House, garage, room, something else? How was the under declaration picked up and who by? Were you aware of it earlier (or suspect it earlier)?
Care re the self assessment of the penalty rate as that could come back to bit if in fact HMRC are already aware of the underpayment, or indeed they do not accept the reasonableness of the claim or if they consider it was deliberate when perhaps you/your client argue the opposite.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position