Failed to declare income - what do I do?

[mags52]

I think I may have inadvertantly failed to declare income. I know that sounds ridiculous but I was wrongly advised 4 years ago. My sons and various friends have lived in my second owned flat and paid the mortgage and costs for the 4 years. I understood that all costs were chargeable against the income so assumed that as I was making no profit I was not making an income. From reading this and other forums I realise that only the interest on the mortgage was tax deductable. I clearly owe money to IR - will I be penalised for declaring after 4 years?

[amccann@dtegroup.com]

In answer to your question yes you be penalised as you have understated your income.The best route is to bring the error to the Inpectors attention without delay as such action will mitigate penalties.You should take the opportunity to check you have claimed all the deductions you are entitled to in an attempt to reduce the arrears of tax.
If assistance is required please call me on 0161 767 1291 or 07715 755238.
Alan McCann CTA ATT
Director of Taxation
DTE Business Advisory Services Limited