Left UK in 2006 but did not declare rental income since 2009

Left UK in 2006 but did not declare rental...

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Hi all

OK here it goes.

Sami left UK in 2006 and filled a from P85 to let the HMRC know he is leaving UK and started his own business in Germany.

Since then he has bought 3 properties in UK in about 2009 but did not declare the rental income of about £7,000 - £10,000 net a year. [Could he still use his Personal allowance]

Now he is coming back to UK in couple of months for good want to sort it out.

His family still in UK who he visit once a month.

What is the best way to declare the rental income? Call HMRC or can just open a self assesment account.

Thanks

Replies (4)

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By possep
27th Nov 2014 17:04

Info

Might be an idea to put some more facts here - Nationality for a start.

Thanks (0)
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By nameistaken
28th Nov 2014 09:46

British

Sorry for lack of info.

 

Sami is British National.

Was working fulltime until 2006 when he decided to move to Germany and started working there as self employed. filled P85 before he left.

Has all the family here in UK i.e the spouse who works part time.

While in Germany he bought 3 buy to let properties since 2009 and received about 7000-10000 net rental income after all the allowed expenses. the rental income is undeclared.

there are 2 questions

1- How to declare the backdated rental income to HMRC

2- Can he still use his Personal allowance to calculate tax due eventhough he was not UK resident.

 

Thanks

Thanks (0)
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By julian.sims
28th Nov 2014 11:52

Non-resident landlord?

I have assumed that Sami is non-resident.

It appears that 'Sami' should have been treated as a non-resident landlord (although test is usual place of abode, not residence).  Unless he registered as such, when HMRC would normally have issued a Tax Return, the agent or tenant should have been deducting tax at basic rate from the rents. 

I would however expect client to be entitled to UK Personal Allowance so on the figures given any tax due is likely to be quite small.

Best to use the Let Property Campaign Disclosure process https://www.gov.uk/let-property-campaign which I believe is still open.

 

Thanks (1)