Informing HMRC of backdated rental income

Tax returns?

Has the client already prepared tax returns for those years?

My approach would be....

Get the client registered with HMRC so that they have a UTR

Get your 64-8 submitted

Write to HMRC and advise them of what has happened and that you are now in the process of completing the missing returns

You will need to complete a full tax return for each year the client had rental income

Once they are submitted and HMRC have received them and issues penalties, etc then you can start negotiating the fines and interest charges

SA1 form

http://www.hmrc.gov.uk/sa/forms/sa1.pdf

With covering letter and 64-8 I would say

backdated rental profits

You could of course avoid the need to complete tax returns for 2009 and earlier by providing details of the net rental profit for each year in a letter (assuming of course that there were profits after deducting all allowable expenses) and enclosing your client's cheque for the unpaid tax that you have calculated from your schedules of rental profits. Remember and remind your client that he also needs to disclose any other sources and amounts of income that may have led to a loss of tax in your letter for the earlier years - no point in only making a partial disclosure as for example HMRC know about ALL interest credited to everybody's bank etc accounts for each year since 2004-05

hope that this helps

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In the past, and possibly still

a payment on account of at least the tax, submitted with the returns, ought to help with negotiations on penalties and will stop interest, rather than wait for HMRC to process the returns.

It shows acknowledgement of the failure in the past and an attempt to get this up to date ASAP