mrtickle Posted May 18, 2014 Share Posted May 18, 2014 Many BTL / accidental landlords with one or two properties are probably on PAYE and never fill in a tax form. Yes, this. How do I know? They've all either admitted or worse boasted about it. They've nothing to gain by lieing. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted May 18, 2014 Share Posted May 18, 2014 Probably most btl would pay zero tax if they hire an accountant. Quote Link to comment Share on other sites More sharing options...
IP Newcomer Posted May 18, 2014 Share Posted May 18, 2014 Big article in the Money section - why doesn't taxman demand addresses of all BTLs, or how are they to check whether LLs are paying tax? At present no such detail required on tax returns, only the number of rental properties. Both rent and CGT mentioned. Says some LLs are genuinely unaware that CGT is payable. "But other LLs are not so innocent. Type the words "how will HMRC find" into Google and the search engine will automatically fill out the rest of the sentence as "out about rental income." Link: http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10835936/Why-doesnt-the-taxman-ask-buy-to-let-investors-to-provide-their-property-details.html Quote Link to comment Share on other sites More sharing options...
arrgee1991 Posted May 19, 2014 Share Posted May 19, 2014 It's only a matter of time then because rental properties are highly visible. HMRC are in no hurry as they can go back twenty years, or more, and charge interest and penalties. When it suits them, they will trawl through the Land Registry figures and there will be "wailing and gnashing of teeth". Should they do this and just 5-10% of the BTL properties are found to have undeclared income it will probably lead to mass selling of BTL properties to pay the tax and a crash. Would also be interesting if they looked into sales and CGT due at the same time. Good. There was another interesting point that there are a number of landlords who are just on PAYE and don't complete tax returns. Amazes me that HMRC are forever chasing the likes of me for pretty insignificant sums (less than £1000, though once the investigations are done they end up owing me as I originally calculated). There are bigger sums to be chased, it just seems like they can't be bothered if it isn't on the self assessment form. Quote Link to comment Share on other sites More sharing options...
little fish Posted May 19, 2014 Share Posted May 19, 2014 I don’t believe for one minute that the vast majority of BTL’ers do not know they are liable to pay tax. Everybody in this country knows you cannot make money without handing some of it over. Given how easy it would be for HMRC to collect this information, I can only assume that for some reason they don’t want to know. All sales of property are reported for stamp duty purposes, if the buyer already has one property any others should be investigated to check if being let (holiday or AST). Lenders should report all BTL mortgages to HMRC. Letting/ Estate agents to report all rental addresses & owners names to HMRC Any claim for HB should be done in conjunction with a LL tax check (other checks should also be considered – fitness of property) Quote Link to comment Share on other sites More sharing options...
cybernoid Posted May 19, 2014 Share Posted May 19, 2014 I don’t believe for one minute that the vast majority of BTL’ers do not know they are liable to pay tax. I don't know, you'd have to be a special kind of stupid to have got into BTL within the last few years, the figures haven't stacked up AT ALL for some time. However when you're losing money your liability isn't going to be that large either Quote Link to comment Share on other sites More sharing options...
Quicken Posted May 19, 2014 Share Posted May 19, 2014 Actually getting a BTL property and living in it is the latest mortgage fraud. If people who don't have the income to get a mortgage for the property but have a deposit get a BTL mortgage but live in the property themselves. It's the equivalent of self-certified mortgages in 2007. No fraud there though as they're paying themselves officially sanctioned imputed rent. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted May 21, 2014 Share Posted May 21, 2014 Someone do a FOI about what efforts the tax man makes to track down BTL who don't pay tax. Or how many they've caught in the last year,. Anyone who has paid cash in hand rent has been complicit in defrauding the tax man? By not reporting people you're as bad as them?All that is necessary for the triumph of evil is that good men do nothing. Quote Link to comment Share on other sites More sharing options...
MrPin Posted May 21, 2014 Share Posted May 21, 2014 Actually getting a BTL property and living in it is the latest mortgage fraud. If people who don't have the income to get a mortgage for the property but have a deposit get a BTL mortgage but live in the property themselves. It's the equivalent of self-certified mortgages in 2007. Amazing! They can moan about themselves when the boiler goes wrong! Quote Link to comment Share on other sites More sharing options...
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