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Nasty Penalties For Landlords Who Don't Declare Rental Income

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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.taxationweb.co.uk/tax-articles/general/register-for-tax-and-avoid-a-penalty.html

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

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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.taxationweb.co.uk/tax-articles/general/register-for-tax-and-avoid-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

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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:

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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

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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.

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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

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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?

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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.taxationweb.co.uk/tax-articles/general/register-for-tax-and-avoid-a-penalty.html

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

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I actually know a chap who was given a two bedroomed council flat because he spun a line about his ex not letting his daughter stay over if she didn't have her own room (His ex would rather eat broken glass than let their daughter within a country mile of him it seems), Said flat is now being rented out, for a quite handsome profit I should imagine.

I very much doubt that he's declaring any form of income, Being on long term disability benefit with a 'bad' back (that oddly doesn't stop him playing Sunday league football, or posting videos of himself on facebook dancing in pubs when out of his skull!)

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I very much doubt that he's declaring any form of income, Being on long term disability benefit with a 'bad' back (that oddly doesn't stop him playing Sunday league football, or posting videos of himself on facebook dancing in pubs when out of his skull!)

FFS!!

[Edit to add: Welcome to the forum ;) ]

Edited by libspero

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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

The state specialises in perversity. Nobody wins.

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:lol: No, its not quite so easy. All investigations are currently triggered off indicators but not cross-checks and all cross-checks are manual. When HMRC link the right sources together, they may be able to trigger investigations more accurately but they have not even procured the service you are referring to. Maybe in 5 years it will be done, subject to budget.

I cant find the link to the news story atm, but when the coallition came to power one of the first things they announced was credit rating agencies like Experian were going to be involved in checking benefit fraud, I think this is also going to be ramped up to check on tax evasion across the board now becuase the once benign looking credit check companies has the low down on everyone so its quit easy to link their data into the HMRC system called connect.

Basically tax evaders can run but they cant hide. This latest annoucement is tantamount to an amnesty to come clean whilst you still can. :)

Edit: http://www.bbc.co.uk/news/business-10923819

http://www.telegraph.co.uk/news/newstopics/politics/7935823/Bounty-hunters-to-cut-benefit-fraud-by-1bn.html

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How many people have moved, can't get "what their house is worth" so rent it out instead without paying tax on the income, and therefore just manage to pay two mortgages?

How many BTL landlords wouldn't be able to pay their BTL mortgages if they actually had to pay tax on the money they're getting for their properties?

Do you want a house price crash or not? You won't get one until people are forced to sell houses. People just scraping by because they're not paying tax on the rental income they're getting - just one group who aren't being forced to sell.

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I actually know a chap who was given a two bedroomed council flat because he spun a line about his ex not letting his daughter stay over if she didn't have her own room (His ex would rather eat broken glass than let their daughter within a country mile of him it seems), Said flat is now being rented out, for a quite handsome profit I should imagine.

I very much doubt that he's declaring any form of income, Being on long term disability benefit with a 'bad' back (that oddly doesn't stop him playing Sunday league football, or posting videos of himself on facebook dancing in pubs when out of his skull!)

There is a simple answer to that - shop him. Unless it was a close friend I would have no issue shopping someone who is blatently stealing from the rest of us.

The Facebook videos and Sunday league football will be enough to stop his 'disabilty' benefits.

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There is a simple answer to that - shop him. Unless it was a close friend I would have no issue shopping someone who is blatently stealing from the rest of us.

The Facebook videos and Sunday league football will be enough to stop his 'disabilty' benefits.

If you would report someone you don't like why would you make an exception for a close friend?

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The HMRC should make it a lot clearer that they pay the penalty and I don't think there should be any bands but a simple 50% additional penalty for the first year and then 100%.

The way that reads it's almost as if they are trying to avoid warning people of this. Is it online cause I might write to ask why.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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