Received the familiar "have you got income from renting property you haven't told us about" letter and responded that although I do own other properties they are not let and I do not make any income from them
HMRC have now written asking for proof of this in the form of bank statements from some period. I'm not averse to providing these but I don't quite see how it proves I don't receive rental income; I'm quite sure most of the illicit renting in this country is cash based..
Where does it go next? Must the process of satisfying this apparent "guilty until I prove myself innocent" chase be performed to the HMRC script? If I turn over bank statements that show a friend (nothing to do with either of the houses) regularly paying me back a loan I made him do I then start having to justify every aspect of my financial life?
Do I have any recourse to say "actually, why don't you provide me evidence of my apparent guilt so that I can respond directly to it? How about we shut this whole thing down now by me giving you the contact details of the family members that occupy these houses and you ask them to confirm they do not pay me rent?"
The only advice I find on the net is about when HMRC have it right and the person owes tax; I can't find anything applicable to people who genuinely do not let out their second houses..
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