Let property campaign – HMRC delay, interest...

Let property campaign – HMRC delay, interest, registering for SA, AML

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Help needed please:

1.  How long do HMRC take to respond to the Notification of Intent?

2.  When calculating interest on disclosed profits, are payments on account disregarded,?

3.  On submission of disclosure under the LPC, will HMRC issue a UTR and, after 5.4.2024, a notice to file 2023/24 tax return?

4.  Would it be advisable to register for self-assessment at this stage and obtain UTR? It does not seem to be particularly advantageous.

5.  AML: Does 5 years' of income to be disclosed under the LPC alone make a new client AML high or medium risk?

Thank you.


Replies (2)

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By Hazel Accounts
14th Feb 2024 11:27

I've only done one LPC case:
1. The person had already notified so I don't know how long, but overall the correspondance after that was dealt with by HMRC fairly efficiently.
2. No - interest is calculated on the payments on account too.
3 & 4. Why would you not just register for self-assessment now and get a UTR for the current year onwards? I wouldn't assume HMRC will do anything as they probably will not. (My client aleady had a UTR so this was not an issue for me)
5. You need to make your own judgement depending on all factors including the circumstances of non- disclosure but also on what else they do - I would not consider them low risk.

Thanks (1)
By SteveHa
14th Feb 2024 12:01

Re 2. I've had one just this week where I asked HMRC for their calculation of interest, and they have, indeed, calculated POAs and interest.

Rest assured it will be challenged. POAs can only arise in respect of a Return submitted under TMA 1970 S9. The disclosure is not a Return, and so no POAs can enter into it.

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