CHALLENGING A SELF ASSESSMENT INSTRUCTION FROM HMRC

[LoisLane]

I am receipt of a small pension and some benefits which are taxed by PAYE. I also have some savings and these are also taxed by HMRC altering my PAYE tax code.

In the 2025-26 tax year I expect to receive just under £8500 in interest on my savings.

For some reason HMRC have sent me a letter telling me I have to register for self assessment. I can't understand why they have sent this to me as my level of savings interest isn't going to be enough to trigger the 10K threshold to take me into the realm of self assessment.

I think I might know what has happened but don't know what to do about it. My Dad has a house he rents out and I recently had to sign his HMO licence application as he has used me and my sister's names regarding this house to offset some of his CGT liability. Is it possible this data has been passed by the housing authority to HMRC and do HMRC think I am in receipt of rental income which I have not been declaring?

I have to emphasise that I was completely unaware until recently that I might have been named on this property deed, have never and will never receive any rental income from this property and have absolutely nothing to do with this property. I cannot declare to HMRC rental income which I am not in receipt of. How can I challenge this self assessment instruction?

[AGoodman]

It sounds as though you are saying you and your sister are the registered owners of the property. I don't understand what you mean by " to offset some of his CGT liability".

You need to speak to an accountant as you or your father could well have problems with HMRC - particularly if your father has not been declaring the rental income or has evaded tax some other way. You can't simply say that you have nothing to do with the property if you are the registered owner and/or signing documents.

It's important to ascertain exactly what has happened and why so that you can give HMRC a clear picture. Anything less could cause significant problems and will take much longer to clear up.

If you don't think your father is doing anything wrong, you could just call HMRC and ask them why you have received the notice.