New client has not disclosed significant rental income - what are tax penalties with full disclosure

New client has advised that they have been earning about £20K per year for the last 4 years renting out 4 rooms in their private property under the assumption that the rent a room scheme exemption limit is per room and so covered the income. As far as I am aware it is per residence so there is a significant tax liability.

Assuming full voluntary disclosure, what are the likely tax penalties?

Thank you

 

 

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Probably not more than 10%

Euan MacLennan |
Euan MacLennan's picture

Probably none

Nichola Ross Martin |
Nichola Ross Martin's picture