After a bit of advice if possible please. Potential client approached my firm and basically said they have 9 years of rental income that they have not declared and therefore not paid any potential tax on. They are also not registered for self-assessment. So, this would be a Let Property Campaign disclosure. I informed them of this provision. The potential client has not been prompted by HMRC and were made aware of this issue when a friend of theirs mentioned it to them, hence they contacted me. Problem is I have never had to do an LPC disclosure. Besides being aware of it and reading the guidance.
Cut a long story short, potential client moved out of their property and rented it out in mid 2011 and then moved back to live at their property in November 2020. The property was completely managed by a letting’s agency, so pulling together the information on the rents and expenses is pretty easy and straightforward.
They need to let HMRC know that they need to make a disclosure. The bit that I am not sure about, can I inform HMRC on their behalf (once I engage with them as a client)? Reading the guidance, it says that agents can fill in the Agents Digital Disclosure Service form and then the client can fill in COMP1a form to authorise HMRC to deal with the agent. Or is it better that they (1) register for self-assessment in the first instance as they have rent received in the 20/21 tax year (so this need doing anyway), (2) I get a 64-8 in place (3) I inform HMRC that a disclosure needs to be made.
I am going to try and ring their helpline on Monday, but I just wanted to see if I can go n better armed so to speak.
On another note, what you roughly charge for this type of work? Client doesn’t want expensive and also, I am not a charity service, so I am scratching my brain on what is a reasonable fee. At the same time they have benefited from untaxed income for so many years. The other side of the coin is I tell them to look for another accountant who has experience in this but also it would be good to get some experience in this.
I have been reading this post https://www.accountingweb.co.uk/any-answers/let-property-campaign-8 and have found it informative.
Thank you for your time.