Landlord saved £60k in tax, interest and penalties
At ADL Tax, we understand the anxiety and stress that tax disputes can cause. Our mission is to help our clients resolve these issues with expertise and care, providing them with the best possible outcomes. Here’s a real-life example of how we successfully navigated a complex tax dispute on behalf of a client, Mr. S, who faced significant challenges, and saved him over £1.5m in penalties.
The Challenge: Undisclosed Property Income and Disposals
Mr. B had accumulated six properties over the last 20 years, jointly owned with his wife, but had failed to submit any tax returns to HMRC. After battling an aggressive form of cancer, Mr. B wanted to set his tax affairs in order. Before he could do so, HMRC sent a nudge letter to Mrs. B, asking her to check her tax affairs and make a disclosure if required. Our goal was to protect our client while ensuring compliance with HMRC regulations and obtaining a cost-effective settlement.
The Solution: Voluntary Disclosure via Let Property Campaign
After discussing the case with the clients and exploring the available routes to making a disclosure, we registered our clients under the Let Property Campaign. We agreed to approach the case using our tried and tested five-step plan. Having carried out the initial consultation, we proceeded with the following:
- Financial Audit to Understand Tax Exposure: We worked with our clients to obtain and analyse the underlying financial information, including rental income and expenditure, property purchase and sale details, as well as revenue and capital expenditure. We computed the potential exposure for our clients.
- Advice on a Plan of Action: We explored our clients’ circumstances, including health, employment earnings, property ownership, and personal situations. We advised that there was a good chance of HMRC accepting that our clients had a reasonable excuse, which would limit the number of years assessable to four tax years.
- Implementation of Our Plan: We meticulously prepared a comprehensive disclosure letter to be submitted alongside the online forms, outlining Mr. B’s situation and the reasons for the historical non-declaration.
The Outcome: A Favourable Resolution
We then entered into an exchange of correspondence with HMRC on whether our clients indeed had a reasonable excuse. After a couple of rounds, we reached an agreement that our settlement proposal was acceptable.
The Impact: £60k+ Saved
The difference between HMRC accepting our clients had a reasonable excuse and them having to declare all years was approximately £60-70K. Without our intervention, our clients would have been required to find the additional funds by selling and/or refinancing their properties.
Take Action Today
If you need to make a voluntary disclosure, don’t delay. Contact ADL Tax today for expert support and guidance. Our team is ready to assist you in regularising your tax affairs and minimising potential penalties.
Book a free initial consultation with us today and take the first step towards resolving your tax issues.
