So how long until the tax man comes down hard on landlords?
Discussion
Having known/worked with/met/rented off many so called landlords in the past who blatantly claim they are earning money from rental income yet do not declare any of these earnings (nor claim the expenses that they are entitled too) to Mr Taxman.
How long before the taxman decides that enough is enough and he is going fishing for his share of said income? Or is this already somehow happening?
Please discuss....
How long before the taxman decides that enough is enough and he is going fishing for his share of said income? Or is this already somehow happening?
Please discuss....
Plotloss said:
pilchardthecat said:
About as much chance of them going after all the Ltd Co IT Contractors pretending to not be IR35, ie; bugger all.
Au contrare.They've spent a LOT of money trying to nail people to IR35 and have thus far recovered £83K
I would have thought that by now judging by the amount of 'new' landlords there are out there, some making decent sums and some on the brink of financial suicide the tax man would want his cut.
I would have thought it was simply, scan letting adds for properties to rent, cross reference with the land registry and go fishing...
Seems this is not the case....
I would have thought it was simply, scan letting adds for properties to rent, cross reference with the land registry and go fishing...
Seems this is not the case....
id be more interested in the tax man going all after all the other 'cash based' trades that make hardly any money....
but i don't think landlording will be a big one, after all most people not on tracker mortgages that have 1 or 2 BTL's will not make much more rent than the interest they pay so it's hardly worth persuing them, especially when they could make expense that get's the net taxable rent very low
but i don't think landlording will be a big one, after all most people not on tracker mortgages that have 1 or 2 BTL's will not make much more rent than the interest they pay so it's hardly worth persuing them, especially when they could make expense that get's the net taxable rent very low
If your a landlord you set expenses up legitamate ones against the rental income - franky most of the rent is offset by the mortgage interest then agents fees then your 10% wear and tear allowence if not and you have your own residential mortgage your very silly instead up the ltv on the buy to let while dumping the equity resease into your residential mortgage therefore little or no tax due.
I've never had to pay any self assessment tax on my rental income and I've never had any inlet periods - and to clarify mine are legitamate allowences I beleive there are even more but I don't need to claim them.
One area that could be a cash spinner is people claiming council tax discounts for single occupancy but on the electoral role there are more than one living there!!
I've never had to pay any self assessment tax on my rental income and I've never had any inlet periods - and to clarify mine are legitamate allowences I beleive there are even more but I don't need to claim them.
One area that could be a cash spinner is people claiming council tax discounts for single occupancy but on the electoral role there are more than one living there!!
Welshbeef said:
and to clarify mine are legitamate allowences I beleive there are even more but I don't need to claim them.
i'd say you do mate, declare a loss on your SA if you're making one. Carry it forward until you make a profit and it will be offset by the loss bought forward..Many, many "buy to lets", espcially those acquired over the past ten years, make little or no Rental Profits. Indeed, a great numbetr make losses.
However, despite this, it is still a legal requirement to make a return of rental income irrespective of whether it is making money or not. Indeed, if it is making losses, as the previous poster says, returning a loss so that it can be offset against any future profits make sense.
However, despite this, it is still a legal requirement to make a return of rental income irrespective of whether it is making money or not. Indeed, if it is making losses, as the previous poster says, returning a loss so that it can be offset against any future profits make sense.
amirzed said:
id be more interested in the tax man going all after all the other 'cash based' trades that make hardly any money....
but i don't think landlording will be a big one, after all most people not on tracker mortgages that have 1 or 2 BTL's will not make much more rent than the interest they pay so it's hardly worth persuing them, especially when they could make expense that get's the net taxable rent very low
Mr taxman is after non declared rental income.but i don't think landlording will be a big one, after all most people not on tracker mortgages that have 1 or 2 BTL's will not make much more rent than the interest they pay so it's hardly worth persuing them, especially when they could make expense that get's the net taxable rent very low
http://www.moremoneyfromproperty.co.uk/tax/task-fo...
http://www.primelocation.com/news/buy-to-let-landl...
Shaid GTB said:
I would have thought that by now judging by the amount of 'new' landlords there are out there, some making decent sums and some on the brink of financial suicide the tax man would want his cut.
That doesn't really make any sense. If someone is on the brink of financial suicide what is to gain by pursuing them to a bankruptcy? And this doesn't make sense with your first post that these landlords are making lots of profit from the rentals. If they are all making loads of profit, then why are they on the brink of financial suicide?
Furthermore, how do you know intimately what people fill out on their self assessment? What people say in a pub is not necessarily an indicator of what they really do.
tinman0 said:
Shaid GTB said:
I would have thought that by now judging by the amount of 'new' landlords there are out there, some making decent sums and some on the brink of financial suicide the tax man would want his cut.
That doesn't really make any sense. If someone is on the brink of financial suicide what is to gain by pursuing them to a bankruptcy? And this doesn't make sense with your first post that these landlords are making lots of profit from the rentals. If they are all making loads of profit, then why are they on the brink of financial suicide?
Furthermore, how do you know intimately what people fill out on their self assessment? What people say in a pub is not necessarily an indicator of what they really do.
However, as I said earlier, even if a landlord is making losses then making a Self Assessment tax return might be well worthwhile.
Another aspect is splitting the ownership of the property so that a spouse or "other half" can make full uise of their tax bands and allowances - especially if the "other half" has no other income or the main breadwinner is a higher rate taxpayer.
tinman0 said:
Shaid GTB said:
I would have thought that by now judging by the amount of 'new' landlords there are out there, some making decent sums and some on the brink of financial suicide the tax man would want his cut.
That doesn't really make any sense. If someone is on the brink of financial suicide what is to gain by pursuing them to a bankruptcy?And this doesn't make sense with your first post that these landlords are making lots of profit from the rentals. If they are all making loads of profit, then why are they on the brink of financial suicide?
Furthermore, how do you know intimately what people fill out on their self assessment? What people say in a pub is not necessarily an indicator of what they really do.
bankruptcy is the easy way out,they should be forced to live in in one of the five bedrooms of the two bedroom house they are renting out.and pay the extrsianate rent and have to argue it out with the other tenents about hues turn it is to buy electricity for the meter and hue has stolen there food.
Dick_Phallus said:
He doesn't work in IT?
Then what's his problem? Tax avoidance / mitigation is perfectly legal. Tax evasion isn't. Operating your company outside of IR35 perfectly legally is... well, perfectly legal.
Sorry, but the "dog in the manger" attitude is just the politics of envy.
(Plus the Revenue do pursue IR35 very vigorously and a lot of effort and legal expenses are expended by legitimate businesses to stay outside of the rather pathetic and ill thought-out legislation)
ewenm said:
Plotloss said:
pilchardthecat said:
About as much chance of them going after all the Ltd Co IT Contractors pretending to not be IR35, ie; bugger all.
Au contrare.They've spent a LOT of money trying to nail people to IR35 and have thus far recovered £83K
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