Please help!! complicated rental income tax problem

[chiefmissile]

Hi any advice on the information disclosed below would be much appreciate. I have been in the military for 25 years and have been naive about income tax from my rented property.





1. Before i was married i bought a house in 1999.
2. Got married and lived in the house for 5 years then had to move because of my military job, rented the house out.
3. Never filled in a Self assessment.
4 Never put my wife on the deeds or mortgage.
5. Have not declared rental income since March 2005, as my wife was not working and thought that she could receive the rental income against her personal Tax allowance.
6. Mortgage payments made from our joint account so in theory she has a beneficial interest in the property, if we were to divorce she would be entitled to half.
7. Since moving to the middle east my mortgage rate has been 0.87% so not much interest being paid, rental income has increased significantly.
8. We have been in the middle east since Dec 2008, but did not register with the NRL scheme, what are the benefits of this scheme, as i understand it you would receive payments gross and declare this on a self assessment, so you would be taxed anyway on the self assessment declaration? .
9. I still pay UK tax as i am on loan from the British military to the Omani military, we have not been back to the uk since Dec 2008.
10. My tenant did not with hold any rental income and pays gross income into our joint UK bank account, could the tenant be in trouble also?
11. I have decided to come clean with HMRC and notify them of unpaid tax before they come to me, if i do this will they still allow for deductions on the liability against expenses incurred like maintenance, property insurance, management fee, etc or will they not allow deductions because of my late disclosure?
12. As my wife did not work in the UK will they accept her beneficial interest in the property because the mortgage was paid from a joint account and that she lived in the property with me for 5 years before letting?
13. Because i have come clean will they be lenient with me?

14. Would any tax adviser i employ to undertake my case get any payment from HMRC for my disclosure?

15. Is there anything that i can do now to reduce my liability before contacting HMRC?

16. Can i use losses in investments to off set the tax liability on the rental income not declared?

17. Will my non residency in the UK be taken into account when HMRC calculate my unpaid liability?


Thanks in advance for any advice.



Regards


Andrew

[Peter D]

Has this not all been addressed before by Tax Champion and others. Regards Peter

[chiefmissile]

Hi,

Yes some has, but i have asked more spesific questions about my rental property in this section of property tax, sorry for any confusion, just trying to get as much advice as possible. I have been offered advice on a fee paying basis of 90 per hour for the disclosure process and 60 per hour on the property issues, is this a good deal?

Regards

Andrew

[Incredulum]

Sounds like a bargain - particularly when you post 17 questions on a free forum!