Is there an advance clearance procedure for getting HMRC agreement that Rent-a-room relief is available in a given set of (borderline) circumstances? Obviously would not be obtainable in time for 31 Jan deadline for 2011-12, but I mean generally.
An alternative would be to claim the relief and white space yourself into oblivion. But would you have to repeat that process every year? I appreciate that the circumstances might change from one year to the next (much as they might do when a PAYE dispensation is granted) and a clearance might have to be reviewed and re-confirmed. I just wanted to try to get out of the hassle of annual white spacing when there are no relevant changes of circumstance.
Another alternative would be to white space yourself to kingdom come in year one and then, if no enquiry is raised into that return, AND if there are no changes in circumstances, then to assume implicit clearance. The likelihood of an enquiry in a later year would probably be reduced by adopting this policy, but that would have to be weighed up against the penalty regime and opportunity for back duty assessments. It occurs to me however that you might have a defence against an accusation of "carelessness" if you have gone through the hoops in year one (alone). In that case, even if there is as adjustment the penalty would be at 0%. Doesn't get you out of the back duty assessments, mind, so on balance a more dangerous policy, perhaps.
With kind regards
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