I left my property and moved back in with my parents. I rented out the property through a property management company and I pay them a fee. I have used the rent to pay the mortgage. I am going to sell the property now but have just realised that I should have been paying income tax on the rent received. This is not a business. I work full-time and pay my tax and National Insurance contributions. What should I do? I don’t want to be prosecuted.  

Arthur Weller replies:  

HMRC’s publication on making a disclosure under its ‘Let Property Campaign’ (www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure) includes guidance for taxpayers approaching HMRC of their own accord to disclose that they have failed to declare rental income. You are highly unlikely to be prosecuted. But it is much better if you come to HMRC first rather than vice versa.