Self Assesment and paid property income taxes

[littleTower]

In 2014 after getting married, my wife changed her old flat to joint ownership. The flat was being rented out and I didn't realise I that I had to declare 50% of the property income and I never filled out a self-assessment as I didn't have any other income apart from my salary. In 2017 I found out that I had to declare the untaxed property income and after calling HMRC, I got to pay all unpaid property income taxes during 12 months.

This week I have received a Notice of penalty assessment for 2014-2015 and 2015-2016. My problem is that I don't know how I need to declare the property income as I have already paid the taxes for those years during the 2017 period. If I include in section "UK property" the property income I will be doble taxed plus HRMC will request me to pay interests on "unpaid" taxes that I have already paid.

I have asked HMRC advice but so far I have not received a response (I'm waiting for a referral call in the next 7 working days).

Anyone can advice?

Thank you in advance.

Kind regards

[bd6759]

Your message is far from clear.

You say "after calling HMRC, I got to pay all unpaid property income taxes during 12 months." What does this mean?

You have received penalty assessments. What are the penalties for? The penalty assessments will state that very clearly on them.

[littleTower]

Apologies for not explaining it clear.

The penalty is for not sending on time the self assessments tax return for the years ended 5 April 2015 and year ended 5 April 2016 (I never sent the self assesment those years).

What I meant with the sentence "after calling HMRC, I got to pay all unpaid property income taxes during 12 months." is the following:

In 2017 I realised that I had not declared my property income for the year 2014, 2015 and 2016 and I called HMRC. Instead of paying as one off payment the unpaid taxes for that undeclared property income, I spread the payments during 12 months in 2017-2018. Is this more clear now?


My main question is now that I need to send the self assessments for 2015 and 2016,I'm not sure if I need to declare the property income or not because if I do how as I don't want to end up paying the same taxes twice. I hope it is clear.

Thanks again for your help.

Regards

[bd6759]

It is still not clear how you could spread the tax over a 12 month period if you have not told HMRC how much tax was due. This implies that you have reached an agreement with HMRC over the amount of tax that was due. If that is the case, speak with the person you made the agreement with.

[someone]

Also, did your wife get a refund as presumably she was declaring 100% of the income?

I'm assuming you pay tax at a higher rate than her.