Just realised I’ve been messing up my tax return for years

by Readers Question

11:09 AM, 27th October 2014
About 4 years ago

Just realised I’ve been messing up my tax return for years

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Just realised I’ve been messing up my tax return for years

I have a buy to let property (Flat) which I used to reside in 2001 until 2003 and then moved in with my wife and started to rent the flat out.

I changed the mortgage to buy to let and took a personal loan to cover some improvements to the flat. Just realised I've been messing up my tax return for years

Basically I haven’t paid any tax since 2003 as I thought I was making a £50 a month loss due to the mortgage and loan combined costing me £550 pcm and rental income being £495.

However, I presumed that you could use the full cost of the repayment mortgage and have now realised that I can’t!

Can anyone help me out with where I go from here?

Thanks

Jason



Comments

Mark Alexander

11:18 AM, 27th October 2014
About 4 years ago

Hi Jason

It is very important that you don't just bury you head in the sand and hope the problem will go away - it won't .... and the penalties for getting caught out by HMRC will be far more severe.

You need to get a good accountant on your side. They will inform HMRC that you have instructed them and that they will be dealing with matters on your behalf.

You are not alone!

I've referred hundreds of people to my accountants who have made the same mistake. In many instances there has still been no tax payable because people have not claimed everything they were entitled to.

Please see >> http://www.property118.com/member/?id=452

and let me know how you get on please.
.

Mike W

13:09 PM, 27th October 2014
About 4 years ago

Jason,

Irrespective of whether you did or did not make a profit you are required to inform HMRC of any income arising.
tax advisor/accountant/agent to act for you and tell HMRC ASAP. Frankly from your data I suspect you made a loss anyway and recording losses is good to offset against future taxable income. The hassle will be presenting the accounts for the last 10 years!

Michael Barnes

11:41 AM, 29th October 2014
About 4 years ago

Come clean and beg for mercy.

You will be dealt with better if you volunteer the information than if HMRC find out.


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