Rishi’s Free Money Store
Discussion
I have a friend who rents 4 flats out. He has 4 limited companies. One for each flat. He then rents those 4 flats out on booking.com etc as short term accommodation - stay for the weekend etc. He claims SBBR on each, and so... he is now getting £40k from Rishi. He only pays a grand a month for the flats, so basically “yay coronavirus” for him. Even if he has no bookings for three months he’s just been gifted a fair wad of melvins there.
I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
Julian Thompson said:
Or was it inevitable that some business would win and some would lose?
This guy is talking about the Bank of America, but he could equally be talking about any UK bank right now:https://youtu.be/ByIW_opQwms
Julian Thompson said:
I have a friend who rents 4 flats out. He has 4 limited companies. One for each flat. He then rents those 4 flats out on booking.com etc as short term accommodation - stay for the weekend etc. He claims SBBR on each, and so... he is now getting £40k from Rishi. He only pays a grand a month for the flats, so basically “yay coronavirus” for him. Even if he has no bookings for three months he’s just been gifted a fair wad of melvins there.
I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
How is he claiming SBRR on 4 properties? I thought you can only claim it on one per person even if they directors of different companies?I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
Julian Thompson said:
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
To be fair, if you're running a legit business then you can claim. It's the folk who've been putting their earnings through a friendly account or paid in cash who will be totally screwed now. It's not something anyone would have feasibly planned for - even those of us with fresh memories of the 2008 Global Crisis.chrispmartha said:
Julian Thompson said:
I have a friend who rents 4 flats out. He has 4 limited companies. One for each flat. He then rents those 4 flats out on booking.com etc as short term accommodation - stay for the weekend etc. He claims SBBR on each, and so... he is now getting £40k from Rishi. He only pays a grand a month for the flats, so basically “yay coronavirus” for him. Even if he has no bookings for three months he’s just been gifted a fair wad of melvins there.
I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
How is he claiming SBRR on 4 properties? I thought you can only claim it on one per person even if they directors of different companies?I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
chrispmartha said:
Julian Thompson said:
I have a friend who rents 4 flats out. He has 4 limited companies. One for each flat. He then rents those 4 flats out on booking.com etc as short term accommodation - stay for the weekend etc. He claims SBBR on each, and so... he is now getting £40k from Rishi. He only pays a grand a month for the flats, so basically “yay coronavirus” for him. Even if he has no bookings for three months he’s just been gifted a fair wad of melvins there.
I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
How is he claiming SBRR on 4 properties? I thought you can only claim it on one per person even if they directors of different companies?I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
richardxjr said:
SBRR on resi let? Doesn't sound right to me.
I did ask him about that. Tells me because they are short term rents it’s not the same. He’s basically like a hotel business.I did wonder about the HMRC angle - you’d consider them “linked businesses” wouldn’t you. Probably a bit like having a non vat registered company and a vat registered one that does the same thing.
Julian Thompson said:
chrispmartha said:
Julian Thompson said:
I have a friend who rents 4 flats out. He has 4 limited companies. One for each flat. He then rents those 4 flats out on booking.com etc as short term accommodation - stay for the weekend etc. He claims SBBR on each, and so... he is now getting £40k from Rishi. He only pays a grand a month for the flats, so basically “yay coronavirus” for him. Even if he has no bookings for three months he’s just been gifted a fair wad of melvins there.
I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
How is he claiming SBRR on 4 properties? I thought you can only claim it on one per person even if they directors of different companies?I know of other people in a similar situation.
Could he have done a better job of it to make sure business isn’t actually coming out ahead of where it was? Or was it inevitable that some business would win and some would lose?
I could be wrong though.
Edited by chrispmartha on Sunday 5th April 22:50
MrBarry123 said:
MrVert said:
I'd wager, if he gets found out, he will be made an example of. And rightly so.
I'd also put him in the vermin bracket.
I'd also put him in the vermin bracket.
Scumbag of the highest order. He’ll get his comeuppance.
But in the end you know he’s just read the rules - £10k per each company claiming SBRR - and pressed the “yes please” button...
I would expect there will be a lot of cleaning up done over the next couple of years. The various measures have been put in place in some haste, loopholes and opportunities for creative accountancy must exist. Hopefully professional bodies and HMRC will issue guidance to make sure ensure compliance with the spirit of the regulations so rapidly announced is applied.
My understanding is one per hereditament. Don't see how it works for resi though.
I have 2 offices, on separate leases, albeit it next door to each other and the council are telling me I can have 2x £10k. I guess in the same way as if you had 2 properties in the same area a couple of miles apart.
This is information offered to me by the LA, rather than me interpreting it and trying to take advantage.
I have 2 offices, on separate leases, albeit it next door to each other and the council are telling me I can have 2x £10k. I guess in the same way as if you had 2 properties in the same area a couple of miles apart.
This is information offered to me by the LA, rather than me interpreting it and trying to take advantage.
AB said:
My understanding is one per hereditament. Don't see how it works for resi though.
I have 2 offices, on separate leases, albeit it next door to each other and the council are telling me I can have 2x £10k. I guess in the same way as if you had 2 properties in the same area a couple of miles apart.
This is information offered to me by the LA, rather than me interpreting it and trying to take advantage.
Yep. If you’re claiming SBRR on your council tax account then you’re a member of the Rishi Free Money Club and you’re getting £10k per property....I have 2 offices, on separate leases, albeit it next door to each other and the council are telling me I can have 2x £10k. I guess in the same way as if you had 2 properties in the same area a couple of miles apart.
This is information offered to me by the LA, rather than me interpreting it and trying to take advantage.
Julian Thompson said:
See that’s the thing. He’s neither - nice guy actually. He is admittedly, a bit naive with things.
But in the end you know he’s just read the rules - £10k per each company claiming SBRR - and pressed the “yes please” button...
SBRR is the acronym for Small Business Rates Relief. One doesn't have to trade as a Ltd Coy to claim the grant. One has to be the named ratepayer. For commercial premises. So if, like me, you have a Ltd Co but no trading premises, you get.......Nothing.But in the end you know he’s just read the rules - £10k per each company claiming SBRR - and pressed the “yes please” button...
Residential property doesn't get charged rates. It gets charged Council Tax. So, unfortunately, your friend gets the same as the rest of us resi property profiteers. Nothing. Unless we have a little shop or office at which we are the ratepayer.
Nothing. Zero. Zip. Nada. That is what your friend gets from his applications. f
k All.You can't claim SBRR on CT bills. Because they aren't rates bills. You claim rates relief on rates bills (oddly enough). You claim exemption or discount on CT bills. But there isn't a coronavirus grant scheme for CT payers.
This isn't really that complicated y'know.
Edited by Groat on Sunday 5th April 23:03
.....and he is claiming SBRR on the flats' council tax bills, right?
Well obviously he isn't. But.......
....possibly he's claiming these are FHLs (furnished holiday lets). In which case he may well be on to something. In fact, I think he could have won the 40 grand watch!! Separate limited companies claiming separate SBRR for each unit. Yep. I'd say that's a winner!
Well obviously he isn't. But.......
....possibly he's claiming these are FHLs (furnished holiday lets). In which case he may well be on to something. In fact, I think he could have won the 40 grand watch!! Separate limited companies claiming separate SBRR for each unit. Yep. I'd say that's a winner!
Edited by Groat on Sunday 5th April 23:22
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