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Where Taxpayers and Advisers Meet

Tax on rental income from jointly owned property paid by husband in previous years

No clue
Posts:2
Joined:Thu Jan 19, 2017 11:14 am
Tax on rental income from jointly owned property paid by husband in previous years

Postby No clue » Thu Jan 19, 2017 11:41 am

Hi everyone. We were due to file the tax return for year 15-16 when we read somewhere that tax on any income from jointly owned property should be paid by both husband and wife in 50:50 proportion. now I have just applied for a UTR as I have never worked before and a non taxpayer. my husband has Been showing all income under his name for past 8 years. I believe we can file tax return separately this year but what about previous years. We could have saved a whole lot of money. Is there still a way we can amend previous forms. Also in form to obtain UTR they asked when did I start recieving such income what date shall I put should I show from last year or since we let the property out. Will I incur any penalty for informing late. Is there any other procedures to follow

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Tax on rental income from jointly owned property paid by husband in previous years

Postby GlobalTaxAdviser » Thu Jan 19, 2017 1:25 pm

Hi

Yes technically you should have completed a tax return and would have probably saved a lot of money

You only can go back four years. Therefore if you file before 5th April 2017 you can go back until 2013

Your husband will need to amend the latest tax return and claim overpayment relief on the other tax returns

You will need to file tax returns but if HMRC do levy penalties then this could be appealed against

Kind Regards

GTA

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Tax on rental income from jointly owned property paid by husband in previous years

Postby GlobalTaxAdviser » Thu Jan 19, 2017 1:41 pm

Hi


On the UTR, I would suggest you enter the correct date when you start letting the property and send a letter in explaining what has happened. Always better to be honest and upfront.

You may also think of saving tax in the future by changing the beneficial interest of the property in your favour

The penalties can be steep for late tax returns.

Kind Regards

GTA

No clue
Posts:2
Joined:Thu Jan 19, 2017 11:14 am

Re: Tax on rental income from jointly owned property paid by husband in previous years

Postby No clue » Fri Jan 20, 2017 9:23 am

Thanx for your reply GlobalTax Advisor. Do u have any idea how much the penalties could be? And will it be for both of us

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: Tax on rental income from jointly owned property paid by husband in previous years

Postby GlobalTaxAdviser » Fri Jan 20, 2017 10:53 am

Hi

It can be £1600 per year but it probably will not be so much and maybe can be appealed against. Surprisingly HMRC stance on penalties have softened to a degree

There will be no penalty for your husband tax returns

Kind Regards

GTA


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