Husband has declared all joint rental income

Husband and wife joint owners but all income declared on husbands return

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Husband and wife jointly own property. No deed of trust no Form 17. Husband is self employed basic rate tax payer and all rental income has been declared on his return.There is no tax loss . Reason it was done this way appears to be because he was inside self assessment and as an employee( non connected employment )she was not.

Hmrc have issued tax returns for wife for 2015-2016.

Advice please as how to proceed and likely outcome re penalties.

Thank you for help



Replies (3)

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By lionofludesch
24th May 2019 09:59

Technically, she's failed to notify and her returns are late.

Your best option is to throw yourself on the mercy of HMRC and play the "My clients are idiots" card.

Given that there's no loss of tax overall, I'd give you a better than even chance of avoiding penalties.

A smart blow to the back of the clients' heads should resolve the problem for the future.

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By Accountant A
24th May 2019 10:11

This question does arise relatively regularly. Have a search of AA.

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By tonycourt
24th May 2019 10:57

When you say " loss of tax.", do you mean that there was no tax payable on the rental business because there were no taxable profits or that because the husband has declared the profit he has paid the tax his wife would have paid had she declared her share?

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