compliance

[cmb]

Hi ,I duly sent off my tax self assesements by end of October, at April 2009 I was running at a loss £3387yesterday I received a letter form a Tax Office not the one I sent my paperwork to saying that I owed them £400 on my salary and savings, I work for the NHS so my tax is deducted at source on pAYE and the little bit of money I made on savings is deducted at source, no mention was made of my proerty rental I only had it rented out for 7 months the last financial year I think I only made a £30 profit on the rental, it is worrying on the letter they have made no mention about property income it is a bit worrying of wat the HMRC want to do and I think a phone call is needed

[Phlash]

Suggest looking at your P60. Taking the total sum of all income, bearing in mind what you submitted to HMRC, and plug it into an online tax calculator.

Try to reconcile what HMRC are doing/not doing. They should have sent you a calculation?

[cmb]

Hello I have just had a letter from HMRC compliance team, they were not happy with my return,I am still running at a loss, do they normally look a things with a fine tooth comb? I think my arithmatic is correct do they issue penalties if people do things wrong?

Ironically the letter said tax year til April2011 but I assume they mean April 2012,

I have been trying without success trying to phone the number it is a 0191 it says number not recognised.

Inbetween tenants I paid for a gardner to sort out neighbours over hanging trees is that deductable?

many thanks

cmb

[Moderator2]

Two related threads have been merged.

[Wight Knight]

Hello I have just had a letter from HMRC compliance team, they were not happy with my return,I am still running at a loss, do they normally look a things with a fine tooth comb? I think my arithmatic is correct do they issue penalties if people do things wrong?

Ironically the letter said tax year til April2011 but I assume they mean April 2012,

I have been trying without success trying to phone the number it is a 0191 it says number not recognised.

Inbetween tenants I paid for a gardner to sort out neighbours over hanging trees is that deductable?

many thanks

cmb

Yes the Gardener is deductible as long as the house was still part of your letting business, i.e. you didn't move in etc.

Check the HMRC website for contact numbers.

Are you submitting your SA online? It certainly reduces the ability to make mistakes.

AFAIK HMRC both choose tax returns at random to check and also have a filtering/alert system. If your return just doesn't add up, looks suspicious or you have been running at a loss for a number of years you are going to be picked up for an 'enquiry': http://www.litrg.org.uk/low-income-w...re_Rev_looking

Lastly, also in relation to your post from a couple of years ago, remember you cannot offset rental losses against 'earned' income. So HMRC is going to treat your employed wages as a separate issue from your rental income/losses. So it could easily be the case that you have tax to pay on your wages even though you make a rental loss.