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How does Buy to Let END!


macca

What happens when generation rent retire with tiny pensions and massive rent bills!  

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25 minutes ago, spygirl said:

HMRC have got these people.

Before s24 it was possible for a io btl to have a low tax liability.

The leverage on io btl is do extreme theres normally only £50 margin between rent n mortgage payments.

Bringing in s24 kills that.

All io btl mortgages now have a tax liability.

image.png.90e13d994b67c5db1927a75f19d5a5c6.png

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2 hours ago, Hancock said:

The money is in essence cash in hand.

If HMRC could have got it, why are the leaving it for many years into the future.

I remember this was debated on on HPC many years ago, yet still HMRC are biding their time.

Because HMRC have all the time in the world (well 6 years minimum and 20 years if fraud, which intentionally not reporting would be regarded as being)

1 hour ago, Hancock said:

image.png.90e13d994b67c5db1927a75f19d5a5c6.png

That's wrong - Stage four  is from April 2020....

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28 minutes ago, eek said:

Because HMRC have all the time in the world (well 6 years minimum and 20 years if fraud, which intentionally not reporting would be regarded as being)

That's wrong - Stage four  is from April 2020....

It was the point about tax relief on basic rate level.

Your claim that theyve all the time in the world is nonsense, every year there will be a new batch of people evading tax. If theyd the resources/inclination theyd be doing it now.

 

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Too add you're claiming HMRC have all this info to hand, and the technology to catch everyone.

So why dont HMRC simply use it and send those who havent paid any tax on their rental income a letter demanding fully payment. (90% was the quote earlier who havent paid it)

Seems strange that a govt in desperate need of tax revenue doesnt bother using this big brother technology.

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34 minutes ago, Hancock said:

Too add you're claiming HMRC have all this info to hand, and the technology to catch everyone.

So why dont HMRC simply use it and send those who havent paid any tax on their rental income a letter demanding fully payment. (90% was the quote earlier who havent paid it)

Seems strange that a govt in desperate need of tax revenue doesnt bother using this big brother technology.

You may not have noticed it but HMRC have been a bit busy this year and have had to drop a lot of things that were planned due to something called Covid..

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I know a bloke that rents out 2 places. Doesn't pay tax on either despite doing it for several years. His view is the rent is same as the repayment mortgage amount so he has no need to.

they ain’t interested either as I reported it twice (pre COVID, couple of years).

Edited by TheNickos
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1 minute ago, TheNickos said:

I know a bloke that rents out 2 places. Doesn't pay tax on either despite doing it for several years. His view is the rent is same as the repayment mortgage amount so he has no need to.

they ain’t interested either as I reported it twice.

They haven't acted - yet.

Its a difference.

 

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1 hour ago, eek said:

You may not have noticed it but HMRC have been a bit busy this year and have had to drop a lot of things that were planned due to something called Covid..

So what you're saying is this technology you and Spyguy described  that can find out literally everything about our income and spending habits, which also knows if people having failed to declare their rental income .... is also affected by Covid 19.

Do you think the vaccine would work on this machine or would a good hard whack on the top be more appropriate?

At which point it can start chucking out letters to tax evaders, though as you say maybe it will prefer to wait another 5-20 years to send out tax demands.

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10 hours ago, Hancock said:

So what you're saying is this technology you and Spyguy described  that can find out literally everything about our income and spending habits, which also knows if people having failed to declare their rental income .... is also affected by Covid 19.

Do you think the vaccine would work on this machine or would a good hard whack on the top be more appropriate?

At which point it can start chucking out letters to tax evaders, though as you say maybe it will prefer to wait another 5-20 years to send out tax demands.

No what I'm saying is that there has been other priorities all this year.

Covid has meant that last years set of campaigns regarding tax avoidance did not take place because people aren't in HMRC's offices and ensuring systems were in place to ensure furloughed people were paid took priority for what I had assumed was very obvious reasons... 

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2 minutes ago, eek said:

No what I'm saying is that there has been other priorities all this year.

Covid has meant that last years set of campaigns regarding tax avoidance did not take place because people aren't in HMRC's offices and ensuring systems were in place to ensure furloughed people were paid took priority for what I had assumed was very obvious reasons... 

The wheels of HMRC grind very slowly, but they are relentless. 

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Again, to repeat.

HMRC requires you declare all income, even if thers no tax due.

You can deduce whats planned as HMRC follow process, running a campaign to advertise make people aware that they need to decale rental income as there may be tax due:

https://www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure

The Let Property Campaign is an opportunity for landlords who owe tax through letting out residential property, in the UK or abroad, to get up to date with their tax affairs in a simple way and take advantage of the best possible terms.

If you’re a landlord and you have undisclosed income, you must tell HMRC about any unpaid tax now. You’ll then have 90 days to work out and pay what you owe. This guide explains how you can do that.

This coincided with the full roll out of S24.

The rules are in place.

A campaign run.

 

 

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On 21/02/2021 at 08:38, eek said:

A lot of things HMRC work on have a 4-8 year plan simply because there is no need to rush...

But you were making this claim 4 years ago on HPC, so its another 4-8 years from now.

This govt werent too keen on chasing landlords for money in 2010.https://www.theguardian.com/money/2010/jun/10/landlord-regulation-proposals-scrapped

At this moment in time, i am correct, if it changes then you are. Only time will tell.

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On 20/02/2021 at 21:19, TheNickos said:

I know a bloke that rents out 2 places. Doesn't pay tax on either despite doing it for several years. His view is the rent is same as the repayment mortgage amount so he has no need to.

they ain’t interested either as I reported it twice (pre COVID, couple of years).

I reported a young couple living in retirement flat rent free,, council did nothing

There grand parents came over from India and got the flat somehow?

Then they moved in with the parents and the grand kid got the flat, over 1 and a half years now.. Council are doing nothing.. Really strange..

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7 hours ago, macca said:

I reported a young couple living in retirement flat rent free,, council did nothing

There grand parents came over from India and got the flat somehow?

Then they moved in with the parents and the grand kid got the flat, over 1 and a half years now.. Council are doing nothing.. Really strange..

Thats councils.

You need to report to Police, DSS, councillors and MP.

 

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https://www.property118.com/tenants-in-breach-and-need-to-vacate-for-full-rewire/

I wonder if somebody could give me some advice? I have a property which is let to an Eastern European couple. My electrician has been round to do his electrical report. He has advised me that the property requires a full rewire but as “there appear to be up to 10 people living in the property” and in view of hygiene issues he can’t do it unless the house is vacated.

..

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.- it sounds like they are breach of their AST, and may have created a HMO whihc could be a further problem for you. YOU should perhaps take good legal advice on this point.

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14 hours ago, spygirl said:

https://www.property118.com/tenants-in-breach-and-need-to-vacate-for-full-rewire/

I wonder if somebody could give me some advice? I have a property which is let to an Eastern European couple. My electrician has been round to do his electrical report. He has advised me that the property requires a full rewire but as “there appear to be up to 10 people living in the property” and in view of hygiene issues he can’t do it unless the house is vacated.

..

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.- it sounds like they are breach of their AST, and may have created a HMO whihc could be a further problem for you. YOU should perhaps take good legal advice on this point.

Thought this one was funnier.

image.png.f935b4787aa9742188420b9347686d2b.png

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On 23/02/2021 at 12:01, Hancock said:

Now its just a comment on the DT,

But does anyone know where the data can be found on whether its accurate ... i presume by single occupancy buyers, he means owner occupiers as it wont say ho many people are going to live in the house.
https://www.telegraph.co.uk/property/abroad/mumbais-property-market-offers-clue-will-happen-british-house/

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It'll be from the mortgage data I suspect.This page doesn't say,but someone somewhere will be collating single/double etc

https://www.fca.org.uk/data/commentary-mortgage-lending-statistics-december-2020

 

edit:BoE appear to collate it.sorry don't have time to find it.

https://www.bankofengland.co.uk/statistics/mortgage-lenders-and-administrators/2019/2019-q1

Edited by sancho panza
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Heres a good one.

Ignore the  blurb, its 7 houses in the terrace bit of Scabby.

https://www.zoopla.co.uk/for-sale/details/56750550?utm_source=homesco&utm_medium=network&utm_campaign=aggregator&utm_term=04

  • £652,500
  • Fully tenanted investment property
  • 7-unit portfolio spread over Scarborough
  • Aggregate rental income: £37,116 pa
  • Aggregate gross yield 6%

~95k/house

One, for these to wash their face cash wise youd need a gross yield of getting on for ~20%

Scabby has lots of empty rentals.

These house sell for 50k-70k - if they are nice. And take a long time to sell.

The reality is the LL will have to sll each one house by house. And he'll have to serve notice i.e. operate without an income whilst the sales continues.

If you were to buy the 7 houses as a unit - and thers no reason at all -- then you need to be looking at paying ~250k tops.

 

 

 

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38 minutes ago, sancho panza said:

It'll be from the mortgage data I suspect.This page doesn't say,but someone somewhere will be collating single/double etc

https://www.fca.org.uk/data/commentary-mortgage-lending-statistics-december-2020

 

edit:BoE appear to collate it.sorry don't have time to find it.

https://www.bankofengland.co.uk/statistics/mortgage-lenders-and-administrators/2019/2019-q1

  • The value of gross mortgage advances in 2020 Q3 was £62.5 billion, 14.7% lower than in 2019 Q3 (Table A and Chart 1).

Banks are not lending money. Ive kept saying this on here and TOS.

2020 Q2 was dead.

Q3 was meant to be lending lending ....

14% dwn on Q3 19 is a massive fall.

2021 lending is going to be dire.

 

The other was:

  • Of the 87.5% of advances for owner occupiers, the share for remortgages was 25%, a decrease of 3pp since 2019 Q3. The share for house purchase was 55.8%, up 2.6pp from 2019 Q3. Further advances and other mortgages (including lifetime mortgages) accounted for 6.7% of gross advances combined.

 

 

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3 hours ago, eek said:

In other wtaf posts (for which almost everyone on property118 is a world of wtf)

 

Property118 | Can you transfer a section 21 notice to a new landlord? - Property118

so the landlord is trying to get rid of the tenant while selling the property and the new landlord is happy to take ownership before its vacant.

Jesus fucken christ you'd think no man or woman alive would touch it until the house is empty and the shite that will inevitably be left is cleared up, and all damage fixed.

But in England they'll be queueing out the agents door.

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