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frugalista

Grass Up Your Tax-dodging Landlord

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http://news.bbc.co.uk/1/hi/business/4755916.stm

Certain posters to this forum (you know who you are) beware! Better look after your BTL tenants...

The HMRC hotline is open seven days a week from 8am to 8pm

0800 788 887

Upstanding taxpaying landlords of course have nothing to fear from the inland revenue auditing all their accounts with a fine toothed comb.....

:lol::lol::lol::lol::lol:

frugalista

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This is the Business Anti-Fraud helpline which has been around for years. It's just a new advertising campaign that's all. It doesn't specifically mention landlords.

Tax evasion is a serious offence with severe penalties including jail. I would have thought landlords would be one of the least likely occupations to evade tax not least because such fraud is relatively easy to detect. HMRC can do data matches on the electoral roll or council tax records and the Land Registry to identify properties not occupied by their owners. They will inspect letting agent's accounts and routinely check local adverts. A new tenant or one of their friends may even work for HMRC and in any case will probably put themselves on the electoral roll. Rents are usually paid by cheque or standing order. The risk of being caught would be much higher than for a tradesman who only does one off jobs for cash.

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This is the Business Anti-Fraud helpline which has been around for years. It's just a new advertising campaign that's all. It doesn't specifically mention landlords.

That's true, but there's nothing to say they won't investigate landlords if you phone up.

Tax evasion is a serious offence with severe penalties including jail. I would have thought landlords would be one of the least likely occupations to evade tax not least because such fraud is relatively easy to detect. HMRC can do data matches on the electoral roll or council tax records and the Land Registry to identify properties not occupied by their owners.

Well, you and I know that. Trouble is, a lot of BTL landlords are amateurs who either do not understand the tax implications of being a landlord or do, but think that their rented property is a nice little earner on the side which is easy to fiddle.

Professional landlords and letting agencies are sure to do things by the book. But what about the millions of amateurs out there?

Grassing up is a wonderful act of revenge if you feel hard done by. My girlfriend was briefly employed by a tech startup in London who got fired within about 3 months for no good reason. Trouble is, the little company was involved in all sorts of council tax and income tax evasion and software theft. About 6 months later she made a few phone calls. About a year later the company disappeared....

Of course how likely is it that your landlord has ripped you off and left you feeling hard done by? Not likely at all....

:lol::lol::lol::lol::lol:

frugalista

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I tried to report my landlord about two years ago by contacting this dept. at the tax office, and they said they didn't currently have the resources to investigate.

I just sent all the landlord's mail (bank statements etc) back as "not known at this address", and putting the names of all the tenants on the voter registration forms... then when it does bite them, there'll be records going back a couple of years that they weren't doing it by the book...

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I tried to report my landlord about two years ago by contacting this dept. at the tax office, and they said they didn't currently have the resources to investigate.

I just sent all the landlord's mail (bank statements etc) back as "not known at this address", and putting the names of all the tenants on the voter registration forms... then when it does bite them, there'll be records going back a couple of years that they weren't doing it by the book...

Gee that was helpful, not known at this address, what a lie.

I see your angle, but as usual with people, I think you're hiding behind a bunch of myths to justify what you did.

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Gee that was helpful, not known at this address, what a lie.

I see your angle, but as usual with people, I think you're hiding behind a bunch of myths to justify what you did.

yeah its quite evil but if the IR arent going to investigate, i have heard of more evil things, a sister of a friend rented out her house (with all her mail still going to the property) to a group of lads, they trashed the place and to add insult to injury used the paperwork sent to the house to setup bank accounts and loans, and eventually remorgage the house :(

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The surname of my landlord is Jowell!!!!

I will keep posting developments,perhaps a coincidence,who knows.

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I do not see what is evil about everyone having a level playing field and having to pay tax on earnt income.

Its unfair that people evade this sort of thing.

A landlord who doesn't declare rental income is as likely to not bother with health and safety requirements too.

If it means fewer people getting fleeced over deposits too then thats good too.

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Grassing your landlord is not the way to go since goverment are bigger scum bags and are taxing ALL OF US to death so why help them.

A typically ridiculous viewpoint. The government is elected by the people and so if they are scumbags, that's our fault. If they don't collect our money from thieving tax-evaders then they are negligent and should be replaced.

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Gee that was helpful, not known at this address, what a lie.

I see your angle, but as usual with people, I think you're hiding behind a bunch of myths to justify what you did.

I don't know I think theft should be reported and punished. Surely tax evasion should be punished equivilently to directly stealing the same amount of money.

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A typically ridiculous viewpoint. The government is elected by the people and so if they are scumbags, that's our fault. If they don't collect our money from thieving tax-evaders then they are negligent and should be replaced.

Quite right, people get the governments they deserve, as they say.

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http://news.bbc.co.uk/1/hi/business/4755916.stm

Certain posters to this forum (you know who you are) beware! Better look after your BTL tenants...

The HMRC hotline is open seven days a week from 8am to 8pm

0800 788 887

Upstanding taxpaying landlords of course have nothing to fear from the inland revenue auditing all their accounts with a fine toothed comb.....

:lol::lol::lol::lol::lol:

frugalista

Grassing people up is a big nono, especially to the taxman.

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Grassing up should be permissable if Cabinet Ministers are evading tax or their partners receive "tax free"benefits.

Tes.. Jow... "You may very well say that , I couldn't possibly comment"

This one will run and run and run,though the relevance to the forthcoming HPC baffles me.

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I very much doubt this hotline is targetting tax dodging BTL landlords.

The annual tax bill for a single BTL income is likely to be quite small once maintenance and wear and tear tax relief is taken into account. You don't pay tax on the part of the rental income that covers the interest payments on the mortgage. So that doesn't mean a lot of tax is going to be due each year on a small BTL.

To me the hotline is there to catch self employed businesses who work for cash in hand. Eg repair men.

They can 'dodge' more tax in a week than a smalltime BTL can dodge in a year.

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A few years back I got absolutely hounded by the revenue after I DECLARED my rental income. There were a couple of void months caused by matters beyond my control and, silly me, I assumed that the mortgage interest for those two months was an allowable expense. It was not, and they tried to make my life hell. By appearing above the radar you make yourself an easy target. I don't condone tax evasion in any way but you can see how people might find it an attractive option.

Edited by HousingBear

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I very much doubt this hotline is targetting tax dodging BTL landlords.

The annual tax bill for a single BTL income is likely to be quite small once maintenance and wear and tear tax relief is taken into account. You don't pay tax on the part of the rental income that covers the interest payments on the mortgage. So that doesn't mean a lot of tax is going to be due each year on a small BTL.

To me the hotline is there to catch self employed businesses who work for cash in hand. Eg repair men.

They can 'dodge' more tax in a week than a smalltime BTL can dodge in a year.

I think those BTL's with high gearing and multi-million portfolio's are exactly the kind of individuals who have helped create this mess and need to pay tax the same as everyone else.

It's highly unfair that the investment in property shouldn't be as strictly regulated as others - i.e. shares.

Low yield isn't an issue if you don't declare income tax but anyone with under 125% margin is really in for trouble if they don't pay tax.

The fact that banks are now allowing 110% and 100% BTL mortgages is a crime and only encourages those BTL's who are only just breaking even not to declare.

Personally I think the only way to make this work is for the Estate Agents to be legally obliged to notify the Inland Revenue with a Lordlords details every time a new tenancy is agreed. Of course it won't make the problem disappear but it will make everyone think twice about the high gearing BTL culture.

- Pye (Property Speculation Ninja :ph34r: )

Edited by pyewackitt

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I very much doubt this hotline is targetting tax dodging BTL landlords.

The annual tax bill for a single BTL income is likely to be quite small once maintenance and wear and tear tax relief is taken into account. You don't pay tax on the part of the rental income that covers the interest payments on the mortgage. So that doesn't mean a lot of tax is going to be due each year on a small BTL.

To me the hotline is there to catch self employed businesses who work for cash in hand. Eg repair men.

They can 'dodge' more tax in a week than a smalltime BTL can dodge in a year.

And if all landlords have to do real accounts then the cash in hand brigade will also be stopped somewhat.

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Buying houses is a good way of laundering money - buy cheap, do up for cash,rent out or sell. So HMRC should be interested even if the net rents are not that high. Money laundering can be carried out by drug dealers or by the local shop, or plumber that sells a lot for (undeclared) cash.

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  • 301 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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