HMRC is doing an investigation on my family :(

im so worried. my parents are immigrants from India who work day and night to make ends meet - we are a poor working class family but thanks to my grandparents who moved here in the 60s, we have several properties that we rent out. my dad suffers illnesses and had to quit his job so his sole income is rent which is like 5k per year. anyway, my parents didn't know that we were supposed to wholly declare the rental income to HMRC due to language barrier and other things and know they are getting investigated. I'm so scared as we are already struggling for money and now they may face 500% penalties of tax credit overpayment. does anyone have any information on what we can do? we don't care about missing out on the tax credit we just don't want penalties as we could be forced to move back to our home country. i am a medical student and I do not want this to happen.

Reply 1

Anonymous #2

Wait what how is ur dad renting out properties and getting only 5k per year that makes no sense......

Reply 2

Anonymous #1

OP

Original post by Anonymous

Wait what how is ur dad renting out properties and getting only 5k per year that makes no sense......

Its only a 2 bed property and for some reason the rent is very low - I'm not too sure about the actual numbers but if you do the maths I get the full student finance maintenance loan which means that my combined parent income is less than 15,000 per year and both my parents are working...
so yes it does make sense unfortunately

Reply 3

Surnia

20

It's gone from several rental properties to one, and both your parents working to your dad quitting his job and relying on rent, to them both working.

Suggest you need the full facts before asking for advice from anyone. Try the Citizens Advice Bureau, or HMRC themselves:

https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-urgent-debts/dealing-with-income-tax-arrears/

Reply 4

ninjalondon11

6

May be getting consultation from a property tax accountant will help with the best way forward.
Google “let property campaign” … a guide from HRMC

Reply 5

Anonymous #1

OP

Original post by Surnia

It's gone from several rental properties to one, and both your parents working to your dad quitting his job and relying on rent, to them both working.

Suggest you need the full facts before asking for advice from anyone. Try the Citizens Advice Bureau, or HMRC themselves:

https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-urgent-debts/dealing-with-income-tax-arrears/

No need to be so bitter - I meant that both my parents have a source of income. Yes we have two small properties.

Reply 6

Surnia

20

Original post by Anonymous

No need to be so bitter - I meant that both my parents have a source of income. Yes we have two small properties.

Bitter, when I've offered help? No, just pointing out that your story kept changing and if you can't explain it here, how would it sound to the professionals?

Reply 7

Anonymous #2

Original post by Surnia

Bitter, when I've offered help? No, just pointing out that your story kept changing and if you can't explain it here, how would it sound to the professionals?

I completly agree actually im so confused rn it just sounds unrealistic im sorry.

if you are renting 2 properties in london or in the uk, ur gonna get at least i repeat at least like on the minimum 1-1.1k month from EACH property, so how is ur parents income less than 15k COMBINED??????

Reply 8

londonmyst

19

If HMRC find that there has been an honest misunderstanding due to a lack of understanding of the english language or an accidental underpayment of taxes owed, they will issue a small fine.
Then attempt to work out a viable repayment system to collect the tax owed.
They will go through financial banking & tax related records to assess annual income, calculate disposable income and see what payment arrangements are possible.

Best thing for your family member being investigated to do is make an appointment with an experienced accountant who is used to acting for clients involved in HMRC tax investigations.
Good luck!

Reply 9

Kutie Karen

19

Do you your parents know all the law around being a landlord if they don't speak english? There are strict laws on being a landlord and if these have been breached then there could be more issues. Best to get some legal advice.

Reply 10

Kazibar

7

Original post by Anonymous

im so worried. my parents are immigrants from India who work day and night to make ends meet - we are a poor working class family but thanks to my grandparents who moved here in the 60s, we have several properties that we rent out. my dad suffers illnesses and had to quit his job so his sole income is rent which is like 5k per year. anyway, my parents didn't know that we were supposed to wholly declare the rental income to HMRC due to language barrier and other things and know they are getting investigated. I'm so scared as we are already struggling for money and now they may face 500% penalties of tax credit overpayment. does anyone have any information on what we can do? we don't care about missing out on the tax credit we just don't want penalties as we could be forced to move back to our home country. i am a medical student and I do not want this to happen.

How is he only earning £5k from several properties. I live in Cambridge most student beds it’s are about £600 a month. One room would net £7200, one house with say 5 beds it’s £36,000. It doesn’t sound right.

Reply 11

Dnsnnssn

17

Original post by Kazibar

How is he only earning £5k from several properties. I live in Cambridge most student beds it’s are about £600 a month. One room would net £7200, one house with say 5 beds it’s £36,000. It doesn’t sound right.