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Let Property Campaign- disclosing tax credits

Client making disclosure under LPC going back 12 years. Client has been receding child tax credits.

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Client wants to make unprompted disclosure for rental income going back some 12 years for 3 properties. The tax owed is minimal due to high rate interest only mortgages on all 3 properties.However, the point of concern is that client has also been receiving child tax credits whilst not declaring the rental income.  Client is now scared about the non disclosure to Hmrc tax credits about the,be it a nominal amount, rental income as it would have impacted the elegibility for child tax credits. Does  any one have experience of disclosing child tax credit/ benefit income along with rental income through LPC. Client is wanting to pay back all owed/claimed tax credits but is very worried about the incrimination around non disclosure. Any ideas/suggestions on how to proceed with this would be appreciated. 

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By Matrix
17th Jan 2021 01:14

Disclosing through LPC and hoping for the best is not sufficient. Your client should have called the benefits office as soon as they realised they had failed to disclose income. Although how you miss off rental income for 3 properties for 12 years, I have no idea.

Why are they suddenly so concerned? Do you know your AML obligations?

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Replying to Matrix:
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By Acc111
17th Jan 2021 14:31

They sold a property and came to deal with CGT liability. This is when we discussed their rental income. They had not declared as they thought they had no significant additional income to declare.

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By Calculatorboy
17th Jan 2021 01:29

Who in their right mind would venture into practice in 2021..

Luckily i am near end of working life , and I know my clients well ..so have no issues like this

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By Youareatit
17th Jan 2021 07:42

Client?

Asked by
Acc111
Accounts RAAC LTD
Member since 16 Jan 2021

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By Paul Crowley
17th Jan 2021 10:22

If you use the word client we assume you know what any good accountant would know.
That would be no help at all to the average person trying to sort their own problem out

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Replying to Paul Crowley:
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By Paul Crowley
18th Jan 2021 08:52

You are listed to be struck off
Oversight?

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