Renting house for cash ? Dodge taxman ??

bilabonic

bilabonic

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Hi all

Bought a second home as repo and fully gutted it and its like new. I have tenants who wish to pay cash weekly.

Has gas/elec meters.

How do i avoid the taxman as it's classed as an income, what about the electoral register etc

Just a hard working class man trying make a semi honest buck....lol

Cheers
 
Just do it m8. Highly unlikely you would get caught by the taxman. They ain't going to randomly compare the owners name to the electoral roll. Tell them fook all .
 
Tend to agree with Carlos m8 , keep stum and watch who else you talk to about it.
theres some right jealous /vindictive people that would love to dump u in it for no gain to themselves.

Good luck with it m8:proud:
 
you can offset mortgage and other expenses to tax so you would possibly not be liable for tax
 
u have to be careful if there paying cash without a rent book .. they could pay for a month and then nothing .. and claim squatters rights , u might be in for a long wait to get them out then ,


also keep receipts for everything , if u do get taxes the more u have spent the less u pay back
 
bilabonic said:
Hi all

Bought a second home as repo and fully gutted it and its like new. I have tenants who wish to pay cash weekly.

Has gas/elec meters.

How do i avoid the taxman as it's classed as an income, what about the electoral register etc

Just a hard working class man trying make a semi honest buck....lol

Cheers
Click to expand...

What mortgage did you take out on it? was it a buy to let mortgage? i believe HMRC will know people who have these and can easily check whether you are registered on Tenancy deposit scheme which was brought in to specifically find people who do this.

As a landlord - you are supposed to put any deposit into that scheme and your tenant can potentially report you or may even use it against you to get what he wants.

At the end of the day m8 - how much tax will you be paying extra vs peace of mind.


gd luck
 
You'll easily get away with your first one like that mate and they wouldn't have a clue I presume due to the mortgage squeeze and it being your first time as a landlord you didn't opt for a buy to let mortgage ?

If you've got it on a personal mortgage I wouldn’t' even notify them and to be fair you probably wouldn't be eligible for any tax as it is (due to spend on renovation) but you would be subject to tax when you sell.

Ask yourself this why should you donate your hard earned money on capital gains tax when nearly every politician in this country has lied cheated and squirmed their way out of paying it.

Don't get me wrong if you owned 20+ properties etc.. Then I think its only fair, but if you've saved / already been taxed on that hard earned cash why the heck should they be able to take another chunk out of it?

Keep stum hopefully it will be a good pension filler :)
 
Been searching for a weekly payments book/pdf ? I will be collecting money each week and need to keep track.

What's the easiest way guys ?

Any thoughts.

Cheers
 
bilabonic said:
Been searching for a weekly payments book/pdf ? I will be collecting money each week and need to keep track.

What's the easiest way guys ?

Any thoughts.

Cheers
Click to expand...



whsmith has rental agreements and rent books m8. both are legal in scottish law. there is an english version too. they are only a couple of quid m8, best advice to get them.

you also need landlord insurance and cover and if its not included buildings cover. in scotland you have to register with the local authority to become a landlord.

you only pay tax on earnings m8, not the investment of the property. ie, if you made £5k on rent, less the interest and maintenance. you would pay tax on the £5k. if you theoretically bought and installed a £10k kitchen then you wouldnt pay tax for 2 yrs. get it?
 
A few yrs ago i printed one from the shelter site as i had a lodger and he got behind on his rent and i wanted to protect myself but now i cant find the thing try checkin the website plus its a free d/l as well :Clap:
 
I would deffo do it legit. The amount of money you'll make from the rental can be offset against the mortgage payments and then renovations.
If they stop paying you for whatever reason you wouldn't have a leg to stand on. It would take you 6 months to get them out minimum. Any profit you would have made would well and truly go down the swanny.
Plus if anything were to happen to them while they were living in the property (god for bid). You would be well and truly fooked.
Pretty sure that the income from this if it's not your main job would come under your personal tax allowance...... Any accountants out there help me out.
So you would theoretically be able to make £10,100 per year before you paid tax anyway. And if the property is in Joint names, then you can use both tax allowances £20200.
Anyway if you look like your making too much money then have new windows fitted on your own house, new lino, new door, new carpet, new bed new sofa. Get the rental house address on the invoice and bob's your uncle. New stuff for you and a lovely receipt to off set against tax.
Wizbit77
 
well m8 you do have to cover your own back and be carful, but see if you dont tell any1 you will be ok, a very good friend of mine bought a house 10 years ago and advertised were people he knew wouldnt see it and he rented for cash and he also got some1 who was on the dole to say they were living there and got payed twice for it, but he never told any1 and for the last 2 years he himself had to claim the dole and had no comeback cos he never told them, so if you keep it to yourself you should be ok, if people or friends think you are getten something they are not, thats when someone tells the tax man for you and thats what you dont want.
so my moto is just Ssssssssss
 
cheers guy.

Trust me they will be OUT if they don't pay. The £10,100 is CGT tax limit and is different.

This would be classed as income and tax paid as normal depending on your tax bracket.

Will keep it cash and see how it goes.
 
Penners said:
You'll easily get away with your first one like that mate and they wouldn't have a clue I presume due to the mortgage squeeze and it being your first time as a landlord you didn't opt for a buy to let mortgage ?

If you've got it on a personal mortgage I wouldn’t' even notify them and to be fair you probably wouldn't be eligible for any tax as it is (due to spend on renovation) but you would be subject to tax when you sell.

Ask yourself this why should you donate your hard earned money on capital gains tax when nearly every politician in this country has lied cheated and squirmed their way out of paying it.

Don't get me wrong if you owned 20+ properties etc.. Then I think its only fair, but if you've saved / already been taxed on that hard earned cash why the heck should they be able to take another chunk out of it?

Keep stum hopefully it will be a good pension filler :)
Click to expand...

Great advice to follow.....let's all go for a bit of tax evasion. You really think HMRC are that clueless and don't have access to a lot more info that you may think?! Bear in mind it will be on the land registry & been declared by the solicitors who will have done MLR checks and so on.

Depending on how much you paid of course and so the mortgage figures involved etc there *may* not be any other income tax to pay on it, certainly not for a while as the repairs element of the refit would be offsetable as well as the usual - mortgage interest, insurance, repairs & renewals, gas/elec certificates and so on. You also need to consider the potential CGT though as again depending on the figures involved and how much of a bargain you got it may well be worth moving in to in the future to get the private residence relief to mitigate some if not all of it.
 
hoponbaby said:
Great advice to follow.....let's all go for a bit of tax evasion. You really think HMRC are that clueless and don't have access to a lot more info that you may think?! Bear in mind it will be on the land registry & been declared by the solicitors who will have done MLR checks and so on.

Depending on how much you paid of course and so the mortgage figures involved etc there *may* not be any other income tax to pay on it, certainly not for a while as the repairs element of the refit would be offsetable as well as the usual - mortgage interest, insurance, repairs & renewals, gas/elec certificates and so on. You also need to consider the potential CGT though as again depending on the figures involved and how much of a bargain you got it may well be worth moving in to in the future to get the private residence relief to mitigate some if not all of it.
Click to expand...

Valid points although I do think your like a leach on my posts (at least you've managed to string more than 3 words together so well done on that bit :Clap: :) If I told you the sky was grey would you disagree and tell me its pink??

Also yes I really do think the HMRC is that clueless (in fact one would say they are currently at breaking point. They've got a lot more to deal with than an individual with 1 extra house lol)

And to quote you with your own reply's "Bear in mind it will be on the land registry" === "No Shit lol"

Did you notice the news at all recently? especially the bit about the politicians evading CGT. Wake up and smell the coffee, politicians / part time landlords have been juggling houses for years.

Suppose the question is do you feel lucky?

It amuses me that you've had to go through my profile to pick a post to argue with since your last debate was all of 3 words.

Keep TROLLING through my posts mate I'm sure there a few more you could try and argue on?
 
Penners said:
Valid points although I do think your like a leach on my posts (at least you've managed to string more than 3 words together so well done on that bit :Clap: :) If I told you the sky was grey would you disagree and tell me its pink??

Also yes I really do think the HMRC is that clueless (in fact one would say they are currently at breaking point. They've got a lot more to deal with than an individual with 1 extra house lol)

And to quote you with your own reply's "Bear in mind it will be on the land registry" === "No Shit lol"

Did you notice the news at all recently? especially the bit about the politicians evading CGT. Wake up and smell the coffee, politicians / part time landlords have been juggling houses for years.

Suppose the question is do you feel lucky?

It amuses me that you've had to go through my profile to pick a post to argue with since your last debate was all of 3 words.

Keep TROLLING through my posts mate I'm sure there a few more you could try and argue on?
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No offense but I've got far better things to do than follow you around and as for "leach on your posts??" Wtf I've commented on one!! It just happened to be a thread with a topic I know a damn site more than you about and that was a piss poor piece of advice to give somebody.

People do get away with things and HMRC should have bigger things to go after, doesn't mean they always do though. If we're going on that basis then you'd think the police have better things to do than prosecute people doing 34 in a 30. Also so some politicians have avoided paying CGT. The op isn't talking about CGT, which in the circumstances would be simple to completely eliminate, he's talking about Income Tax.

Also I have no desire to go on a trawling hunt through your previous posts, I'm sure they have all been of such high quality. I also don't want to get in to a flaming war, I mod other forums and so know how much it annoys the staff
 
I was in the same boat as you,took the same attitude as you and all was well for 6yrs. then came the dreaded letter."it has been bought to our attention".To be fair the taxman sorted everything out for me and i ended up with credits.I asked how this had been to his attention,being paranoid etc,and he said i was 1 of 330,000 people being investigated in his office alone,alerted by local authority.could be rent,poll tax land registry
 
hoponbaby said:
No offense but I've got far better things to do than follow you around and as for "leach on your posts??" Wtf I've commented on one!! It just happened to be a thread with a topic I know a damn site more than you about and that was a piss poor piece of advice to give somebody.

People do get away with things and HMRC should have bigger things to go after, doesn't mean they always do though. If we're going on that basis then you'd think the police have better things to do than prosecute people doing 34 in a 30. Also so some politicians have avoided paying CGT. The op isn't talking about CGT, which in the circumstances would be simple to completely eliminate, he's talking about Income Tax.

Also I have no desire to go on a trawling hunt through your previous posts, I'm sure they have all been of such high quality. I also don't want to get in to a flaming war, I mod other forums and so know how much it annoys the staff
Click to expand...

Obviously accounting isn't your forte ? You've commented on 2 of my post well actually 3 if you count the above.

Your first introduction was your well thought out retort in the "Rant Room" of "No Shit lol" I can understand why you forgot to add that one.

Considering you've only done 4 posts and 2 were aimed at me in 2 separate threads I'd say yes you are a TROLL.

You also stated "It just happened to be a thread with a topic I know a damn site more than you about"

How do you work that out? You know **** all about me or my property portfolio.

P.S Did you Ban yourself from the last forum you moderated?
 
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