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Nasty Penalties For Landlords Who Don't Declare Rental Income


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#1 Democorruptcy

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Posted 30 November 2010 - 07:29 PM

HM Revenue & Customs wants to highlight that taxpayers sometimes need to notify them about certain changes in their business or financial circumstances

Introduction
Are you renting out a property or receiving extra income outside your regular job? You need to tell HM Revenue & Customs (HMRC) about these, or any other changes that mean you have to register for a particular tax or pay tax on undeclared income.

Telling HMRC
Under regulations that took effect from 1 April, you could pay a penalty as well as the tax you owe, if you don't tell HMRC at the right time that:

■you have any income that isn’t taxed and you haven’t declared it.

What Could it Cost if I Don't Tell HMRC?

The new penalty for failing to tell HMRC about taxable income is a percentage of the tax that you owe. You may pay a higher penalty if you deliberately fail to tell HMRC about your income – and an even higher penalty if you take steps to hide it.

The amount you will pay depends on how HMRC views your actions:

not deliberate – the penalty is between 0 and 30 per cent of the tax you owe;
■deliberate but without concealment – 20 to 70 per cent of the tax owed; or
■deliberate with concealment – 30 to 100 per cent of the tax owed


http://www.taxationw...-a-penalty.html

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses. 

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people


#2 8 year itch

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Posted 30 November 2010 - 07:36 PM

I'll believe it when I see it. So far this administration is more talk than walk.

Could be worse I suppose, someone might decide a more fitting punishment is to evict the tenants so the lanlord faces a void. :blink:

There is no ladder.

JY


No need to sell up, the next phase of the economics cycle is going to be very positive for anyone that owns property.

All I'm sayings is, don't listen to the property bears people, they are wrong.


#3 Bloo Loo

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Posted 30 November 2010 - 07:36 PM

If banks are allowed to conceal their bankrupt state by false accounting, then so is EVERY other citizen in the UK.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#4 Democorruptcy

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Posted 30 November 2010 - 07:37 PM

I couldn't find the thread I was looking to post this into but it's turned up now

http://www.housepric...howtopic=151873

Democorruptcy
If you say "Democorruptcy" quickly, it sounds a bit like "Democracy". In a "Democracy" people vote for politicians who represent their interests. In the UK's "Democorruptcy" people can only vote for expense fiddling thieving MPs who are in the hip pocket of big business and the finance sector.

Governbankment
A "Governbankment" is a Government that has no line between itself and banks. It diverts public money (our taxes) to private companies (banks). George Osborne's Help to Buy Bail Banks, will see our taxes go to bankers to cover their losses on mortgages that default. The UK's Governbankment will even pay bankers "reasonable repossession fees" on Help to Bail Bank mortgages that default.

The Funding for Lending Scheme (FLS) is stealing from savers to make them pay for crimes by bankers. Via lower interest on savings, all the bank fines for PPI, LIBOR, interest rates swaps, etc. are being paid by savers so that bankers can keep pocketing bonuses. 

"We need to make a really big change: from an economy built on debt to an economy built on savings" - David Camoron Jan 2009
"Printing money is the last resort of desperate governments when all other policies have failed" - George Osborne Jan 2009
- So what do Camoron & Osborne do? Print money and leave interest rates at 0.5% when inflation is over 5%

If it is asserted that civilization is a real advance in the condition of man -- and I think that it is, though only the wise improve their advantages -- it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.
http://classiclit.ab...en-Part-2_4.htm

I want to tell you my secret now.... I see debt people


#5 smiffy1967

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Posted 30 November 2010 - 07:51 PM

HM Revenue & Customs wants to highlight that taxpayers sometimes need to notify them about certain changes in their business or financial circumstances

Introduction
Are you renting out a property or receiving extra income outside your regular job? You need to tell HM Revenue & Customs (HMRC) about these, or any other changes that mean you have to register for a particular tax or pay tax on undeclared income.

Telling HMRC
Under regulations that took effect from 1 April, you could pay a penalty as well as the tax you owe, if you don't tell HMRC at the right time that:

■you have any income that isn’t taxed and you haven’t declared it.

What Could it Cost if I Don't Tell HMRC?

The new penalty for failing to tell HMRC about taxable income is a percentage of the tax that you owe. You may pay a higher penalty if you deliberately fail to tell HMRC about your income – and an even higher penalty if you take steps to hide it.

The amount you will pay depends on how HMRC views your actions:

not deliberate – the penalty is between 0 and 30 per cent of the tax you owe;
■deliberate but without concealment – 20 to 70 per cent of the tax owed; or
■deliberate with concealment – 30 to 100 per cent of the tax owed


http://www.taxationw...-a-penalty.html


Do you have a link where i can email about my old landlord?

The scum bag stole my security deposit and was a serious A Hole

He was told by environmental health that he could not rent the property until he fixed all the damp problems. He now rents to house as a holiday let.
He never declared a cent in earnings whilst i payed him, had plenty of trips to southern Spain though

#6 libspero

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Posted 30 November 2010 - 07:53 PM

I don't follow..

It appears to say that if you fail to declare the extra income AND lie to conceal it, the worst that happens is that you have to pay back 100% of the tax you saved by not telling them.

Doesn't seem like much of an incentive to tell them.. or did I miss a trick?! :blink:

And I tell you we have learned from past mistakes.
Just as you cannot spend your way out of recession, you cannot, in a global economy, simply spend your way through recovery either.

(Gordon Brown, Labour Party Annual Conference, 29 September 1997)

So, housing affordability is better than it has ever been, but no-one can take advantage of this because they can't afford the houses. I see.
cybernoid - 7th August 2010

Gambling promises the poor what property promises the rich - something for nothing
George Bernard Shaw


#7 libspero

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Posted 30 November 2010 - 07:54 PM

Do you have a link where i can email about my old landlord?

The scum bag stole my security deposit and was a serious A Hole

He was told by environmental health that he could not rent the property until he fixed all the damp problems. He now rents to house as a holiday let.
He never declared a cent in earnings whilst i payed him, had plenty of trips to southern Spain though


HERE: Linky

And I tell you we have learned from past mistakes.
Just as you cannot spend your way out of recession, you cannot, in a global economy, simply spend your way through recovery either.

(Gordon Brown, Labour Party Annual Conference, 29 September 1997)

So, housing affordability is better than it has ever been, but no-one can take advantage of this because they can't afford the houses. I see.
cybernoid - 7th August 2010

Gambling promises the poor what property promises the rich - something for nothing
George Bernard Shaw


#8 Normal

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Posted 30 November 2010 - 08:00 PM

I don't follow..

It appears to say that if you fail to declare the extra income AND lie to conceal it, the worst that happens is that you have to pay back 100% of the tax you saved by not telling them.

Doesn't seem like much of an incentive to tell them.. or did I miss a trick?! :blink:


The penalty is on top of the tax you owe.

#9 okaycuckoo

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Posted 30 November 2010 - 08:03 PM

Ah, the two things I love about this country.

1. Tax is the solution to all problems.

2. The tax collector gets taxpayers to snitch.

#10 interestrateripoff

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Posted 30 November 2010 - 08:06 PM

And yet tax avoidance by the rich is allowed.

Proof that Brown had repeated IMF / OECD / BIS warnings over house prices and did nothing!!!
Looting: The Economic Underworld Of Bankruptcy For Profit
The exponential growth of debt and the unsustainability of debt
The logic of HPI @ 10% YoY means your £100k house would be worth £1.38bn in 100 years
Paying down my mortgage with money found on the street

It's time to sue the Bank of England / Federal Reserve for GROSS NEGLIGENCE
If DEBT is the problem REPAYMENT is the solution or you default

 

"The trouble with the world was that prices were so low that only the rich people could buy and the aim of the Conference was to raise them to a point where it would again be possible for poor people to buy something."

"Northern unemployment is an acceptable price to pay for curbing southern inflation" Eddie George former Governor of the Bank of England

New digest on the credit crisis and economy Part2 Part 3

smaller.jpg


#11 libspero

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Posted 30 November 2010 - 08:16 PM

The penalty is on top of the tax you owe.


Gottcha.. Thanks.

Thought that looked too easy!

And I tell you we have learned from past mistakes.
Just as you cannot spend your way out of recession, you cannot, in a global economy, simply spend your way through recovery either.

(Gordon Brown, Labour Party Annual Conference, 29 September 1997)

So, housing affordability is better than it has ever been, but no-one can take advantage of this because they can't afford the houses. I see.
cybernoid - 7th August 2010

Gambling promises the poor what property promises the rich - something for nothing
George Bernard Shaw


#12 libspero

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Posted 30 November 2010 - 08:17 PM

And yet tax avoidance by the rich is allowed.


Tax avoidance is allowed by everyone ;)

And I tell you we have learned from past mistakes.
Just as you cannot spend your way out of recession, you cannot, in a global economy, simply spend your way through recovery either.

(Gordon Brown, Labour Party Annual Conference, 29 September 1997)

So, housing affordability is better than it has ever been, but no-one can take advantage of this because they can't afford the houses. I see.
cybernoid - 7th August 2010

Gambling promises the poor what property promises the rich - something for nothing
George Bernard Shaw


#13 libspero

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Posted 30 November 2010 - 08:20 PM

Ah, the two things I love about this country.

1. Tax is the solution to all problems.

2. The tax collector gets taxpayers to snitch.


Can't win on this thread.. one saying the rich don't pay enough, one saying the rich (well, landlords) shouldn't have to pay at all.

Love it :D

And I tell you we have learned from past mistakes.
Just as you cannot spend your way out of recession, you cannot, in a global economy, simply spend your way through recovery either.

(Gordon Brown, Labour Party Annual Conference, 29 September 1997)

So, housing affordability is better than it has ever been, but no-one can take advantage of this because they can't afford the houses. I see.
cybernoid - 7th August 2010

Gambling promises the poor what property promises the rich - something for nothing
George Bernard Shaw


#14 cica

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Posted 30 November 2010 - 08:20 PM

The stroke of genius was to get tenants to keep their landlords in line. I successfully sued my bitch of a landlord for £1000 for not securing my deposit. Bit of a weird way of enforcing the law but it works...? Reward citizens for reporting crime?

#15 Tired of Waiting

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Posted 30 November 2010 - 08:41 PM

HM Revenue & Customs wants to highlight that taxpayers sometimes need to notify them about certain changes in their business or financial circumstances

Introduction
Are you renting out a property or receiving extra income outside your regular job? You need to tell HM Revenue & Customs (HMRC) about these, or any other changes that mean you have to register for a particular tax or pay tax on undeclared income.

Telling HMRC
Under regulations that took effect from 1 April, you could pay a penalty as well as the tax you owe, if you don't tell HMRC at the right time that:

■you have any income that isn’t taxed and you haven’t declared it.

What Could it Cost if I Don't Tell HMRC?

The new penalty for failing to tell HMRC about taxable income is a percentage of the tax that you owe. You may pay a higher penalty if you deliberately fail to tell HMRC about your income – and an even higher penalty if you take steps to hide it.

The amount you will pay depends on how HMRC views your actions:

not deliberate – the penalty is between 0 and 30 per cent of the tax you owe;
■deliberate but without concealment – 20 to 70 per cent of the tax owed; or
■deliberate with concealment – 30 to 100 per cent of the tax owed


http://www.taxationw...-a-penalty.html


Why bands this wide, 20 to 70, 30 to 100?
.

High property prices increase: living costs; production costs; and government costs - hence all prices , and taxes!


This also reduces Britain's international competitiveness, impoverishing all of us, including property owners




And NIMBYism is evil.


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