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HELP Please - Not filed Self Assesment for 14 year

HELP Please - Not filed Self Assesment for 14 years

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So my dad has had a property that consists of 2 shops and a flat above, he use to run the postoffice up until 13 years ago and use to live in the flat above, then he moved from there and  has rented the whole block out for the last 14 years, however for some reason he has not filed a self assessment for this period.

We are now thinking we should go to HMRC and get up to date, the property (flat and 2 shops) is registered in 4 names since 2003. how far back should we file the returns too, some people have advised 4 years, some 6 and some the full 14 years. Not sure on the penalties and charges.

Hes never had a reminder to fill in a self assesment, so has never thought to do one.

Any advice would be welcome, not sure the best thing to do.

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16th Jan 2019 14:01

The main advice would be to find an accountant who deals in property tax & is familiar with the let property campaign.

Google is your friend, but I would wait 2 weeks as you wont get much out of many accountants this time of year.

The "how far back" will probably be 14, but it might not. Its an 'it depends on the circumstances'. Generally in a case of failure to notify, it will be the full stretch.

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16th Jan 2019 14:20

Any idea what the penalties would be? i doubt there will be any income tax to pay due to the fact its split between 4 people.

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to cakeboyeee
16th Jan 2019 15:30

Whenever I've done an LPC disclosure I calculate penalties based on 10% of the tax payable. However, if he has no tax to pay in any of the years in question, and assuming that he's not received any notice to file a Return, then he's done nothing wrong.

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16th Jan 2019 14:24

Agree with the above - don't go to HMRC and throw yourself on their mercy it could cost you more in the long run. An experienced accountant will be able to minimise the damage and plead your case. Get quotes from a few but wait until the 31st Jan rush is over or at least be prepared to wait if you find someone. Spend your time collecting all your paperwork together and putting it in order 6th April - 5th April for each year.Income, expenditure and bank statements Perhaps put the detail on a spreadsheet so the accountant can see what they are dealing with. I would guess that HMRC will want to go back the full 14 years and if the property is registered in 4 names and they've had the benefit of the income then it could be 4x14.

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16th Jan 2019 14:44

2 of the 4 have filed annual returns, but never delared the income from the property as the 2 that have not filed were receiving the income.... any idea on the penalty charges??

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to cakeboyeee
16th Jan 2019 15:37

Well the two that didn't get the cash might (or might not) have done the right thing not declaring it.

Its an "it depends" type question. Names on the deeds does not always mean "needs to be declared". You need to get some proper help to work out if there is an implied trust arrangement.

Penalties will depend on the circumstances and which year, probably in the range 0-20% of the tax due + statutory interest for most periods if a voluntary declaration.

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17th Jan 2019 14:18

How about if we sold the property and paid the capital gains, would they chase for the self assesment?

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17th Jan 2019 14:18

How about if we sold the property and paid the capital gains, would they chase for the self assesment?

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