HMRC help/advice.

[Davie_Burns]

Hi all,i need urgent advice.I recently received a letter from HM Revenue and Customs saying they understood i may have received income from property letting but they have no record of this income being notified to HMRC.I let my flat out for 4 years 2001/2005 but assumed i didn't have to pay tax as the income was less than 3,500.p.a.Am i correct in thinking this or am i liable to pay tax on this? Thanks in advance.

[ah84]

Was this your only income? If not then you are incorrect.

[Davie_Burns]

No i was working as well!Anybody know what will happen?:(

[ah84]

You will probably have to pay the tax, interest and a penalty. An accountant will let you know if anything worse will happen.

I would have thought best to cooperate with the revenue, hopefully they will assume you were ignorant and wont make a big deal out of a small sum.

[Davie_Burns]

Thanks,i'm worried sick here as i honestly didn't know.

[TaxationPete]

First thing , Calm Down.

Now collect together records from those years of your mortgage payments building insurance costs, maintenance of the property costs, gas safely certificates. etc. etc. and the rent you recieved. From this produce some accounts and see what 'Profit' you actually made. If there was no profit then there will be no tax, apenalty may apply but if you come clean and show some proof then nothing may come of it. Did you subsequently see the flat. ??