We have today filed full disclosures for two connected clients under the Let Property Campaign. It appears we only have to disclose the last 5 years. Our question is how is likely they to go further back as it was undeclared for a total of 15 years. For those who have used this campaign would welcome your thoughts. Thanks
Related resources
Replies (10)
Please login or register to join the discussion.
What makes you think that "It appears we only have to disclose the last 5 years"?
Have a read through the various scenarios at https://www.gov.uk/government/publications/let-property-campaign-your-gu... .... specifically Section 3.5 (How many years to include in your disclosure) ... and see if you still think the same.
Clue: the period of disclosure does not simply have a fixed cut-off date (before which everything is forgiven) ... a lot will depend on the reason(s) for the lack of returned figures.
Thanks Hugo Fair, we have read through this previously. We will be writing to HMRC anyway, as our clients want to come clean, and we want to be clear that we have told them “everything” we know. Suspect there will be a degree of “horse trading” to sort but you just never know these days with HMRC.
" Suspect there will be a degree of “horse trading”"
Why would you expect that - the process is pretty mechanical them are teh rules and you need to self assess and get it right. If you stretch the rules or go past the rules expect hmrc to come down on you like a ton of bricks. I note you have presumed that only declaring 5 years seems to be fine but have not provided any reasons here as to "why" you think that is fine -imho the "why" is the all important bit and first thing on the to do list ! - if you post the "why" on hear you will probably get some good reponbses as to whether your presumption is reasonable or not !!!!!
its an "it depends on the circumstances"
If you look at the campaign rules its all laid out. Its normally 4, 6 or 20.
20 would apply in cases where there have been no returns at all in the period. The shorter time limits can apply where (for example) one property has been declared but one missed.
You need to go back to the earliest year when you failed to notify HMRC. I have just finished a notification under the Let Property Campaign for a new client. She had undeclared rental income dating back to 2011/2012.
I filed everything online, which wasn't too laborious as her only other income was under PAYE. I filed the tax years 2017/2018 onwards in the normal way using TaxFiler. The years 2011/2012 to 2016/2017 were filed by making a Full Disclosure via the LPC pages on the HMRC website.
It was the first time that I had used the LPC so it was a bit time consuming but, as long as you follow the procedures, it all gets sorted in the end. I even managed to get her late filing penalties set aside.
I did similar for a couple (not married) going back to 2010/11 and two properties.
I found it easiest to do everything on a spreadsheet first. Tax, interest and penalties, and then just copy the relevant figures to the disclosure.
It proved useful. HMRC disagreed with my interest figure, and so I sent them the spreadsheet after which they changed their mind and agreed.
Thanks everyone, this has proved useful. Think I will call the LPC helpline for further advice or write to HMRC. To be clear this is not about dodging the tax but making the correct decision for the client. In the old days we used just send it voluntary tax returns and sit back for a reply - which was far quicker in those days. One to sleep on thanks again.
Thanks everyone, this has proved useful. Think I will call the LPC helpline for further advice or write to HMRC. To be clear this is not about dodging the tax but making the correct decision for the client. In the old days we used just send it voluntary tax returns and sit back for a reply - which was far quicker in those days. One to sleep on thanks again.
Thanks everyone, this has proved useful. Think I will call the LPC helpline for further advice or write to HMRC. To be clear this is not about dodging the tax but making the correct decision for the client. In the old days we used just send it voluntary tax returns and sit back for a reply - which was far quicker in those days. One to sleep on thanks again.
Same clients you referred to here?:-
https://www.accountingweb.co.uk/any-answers/tax-returns-9
when you said
In which case you just follow the rules surrounding failure to notify.This is a client failure to notify HMRC, so no assessments or correspondence from HMRC been received. Thanks
Not sure why you want to write to HMRC or call the LPC helpline. Just follow the rules.