Hello, I think i have a problem with my quarterly rental tax returns.
I have rented out my property for vacation rentals since 2004 and have always completed the tax return and sent it in every quarter.
In 2006 i was going to be away for a couple of months and so i sent the 2nd quarter tax return (covering April, May, June, 2006) to my bank on the 1st June. I knew the rentals to the end of June as they had already been booked.
Payment was made and i thought no more about it.
Last November I received a tax demand for late payment of my 2005 quarter 2 payment! A payment i had made, on time, in 2005.
What had happened was that the bank paid my quarter 2 2006 bill on the 6th June 2006, instead of waiting until July. Apparently you cannot pay tax “early” so by default the tax office assumed the payment was for Quarter 2 2005 and sent me the appropriate surcharge.
I immediately wrote to the tax office explaining what had happened and enclosed copies of my Q2 2005 return, and my Q2 2006 return, both of which were correctly completed and clearly showed the correct dates.
Last week i went out to spain and found a notification of a recorded delivery letter. As it had been sent some 2 months earlier it was no longer at the post office and had been returned to sender. I can only assume the sender was the tax office as i have never had any other recorded delivery letters.
Does anyone know if of any similar problems and whether one needs to do more than just send in an explanation and copies of returns and proof of payments? my wife is getting a bit stressed by the situation.
I also have a question about IBI tax. I have had the apartment from new in 2003 and have never paid IBI tax. I wrote to the town hall two months ago stating this, my address and asking for a bill. So far nothing. How do i find about about the IBI? Or will i receive a demand through the post (to date I have received nothing).
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