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Requirement to Correct - how far to take it?

How far back does HMRC expect us to go?

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I have a client with minimal rental income from Australia that has been declared in 2017/18 and I am in the process of also amending his 2016/17 return.  However, it started in 2007.  I assume there is no limit as to how far back HMRC would want the declaration to go?  I can't find anything confirming either way. 

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By ireallyshouldknowthisbut
18th Sep 2018 13:48

Use the let property campaign. Its 20 years.

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By WhichTyler
18th Sep 2018 13:49

monksview wrote:

I can't find anything confirming either way. 

Are you using the Let Property campaign disclosure process? If so the phrase 'You’ll need to work out the total rental income for each year you’ve previously failed to tell HMRC about.' seems pretty clear to me...

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Replying to WhichTyler:
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By monksview
18th Sep 2018 13:53

No, its was the Requirement to Correct rules I was most concerned with but point taken, if its 20 years under the Let Property Campaign there's no reason to think it would be any less for this.

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By Accountant A
18th Sep 2018 14:06

monksview wrote:

I can't find anything confirming either way. 

Are you serious? Have you not heard of Google??

https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch56100

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By Justin Bryant
18th Sep 2018 15:32

Per the following from the link below:

“The fact that on 6 April 2017 HMRC must be able to lawfully assess the liability means that the RTC will cover the years as far back as 2013-14 if the taxpayer has taken reasonable care, 2011-12 if their behaviour was careless and 1997-98 if the behaviour is deliberate. There is a provision in the legislation extending the assessing time limits so HMRC can assess any tax that should have been corrected until 5 April 2021. This means tax within scope of the RTC that is assessable at 6 April 2017 remains assessable until the end of the usual time limit or 5 April 2021. This provision is to ensure that there is no incentive to wait for time limits to expire before correcting.
It is not envisaged any future change to assessing time limits (such as the consultation announced at Autumn Budget 2017 on offshore assessing time limits) will impact the years that must be corrected under the RTC.”
https://www.taxadvisermagazine.com/article/taking-leap

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Replying to Justin Bryant:
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By Justin Bryant
19th Sep 2018 15:44

Interestingly 2016/17 is not assessable under RTC per the link below:

https://www.lexisnexis.com/tolley/guidance/corporatetax/linkAlertDoc.fac...

Presumably because the filing date is 31 Jan 2018 and the non compliance needs to be present on 6 April 2017 to be within RTC.

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