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BTL Tax avoidance - not me!
ManicMum
Posts: 845 Forumite
in Cutting tax
Hello
a friend of mine has a BTL property as do I. Whilst I am honest and declare all my income, my friend has said they will not be doing a tax return as instead they are getting their tenant to pay the rent into a relative's (my friend' that is) bank account who is a non-tax payer. The mortgage is in my friend's name solely. I told them this sounded highly irregular and that audit trail would still lead to them. They just said they didn't care. Is he being a total idiot? ALso pretty cross as taking the p**s out of those of us who are honest.
Are Inland Revenue that useless that they don't check these things?
a friend of mine has a BTL property as do I. Whilst I am honest and declare all my income, my friend has said they will not be doing a tax return as instead they are getting their tenant to pay the rent into a relative's (my friend' that is) bank account who is a non-tax payer. The mortgage is in my friend's name solely. I told them this sounded highly irregular and that audit trail would still lead to them. They just said they didn't care. Is he being a total idiot? ALso pretty cross as taking the p**s out of those of us who are honest.
Are Inland Revenue that useless that they don't check these things?
0
Comments
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Tax avoidance is actually legal, however this isn't that it's tax evasion.
I'm not sure about the likelyhood of your friend being found out but paying this income into someone else's account won't make any difference as far as I can see. It may implicate the relative though should there be a tax inspection.0 -
that's what i thought. Can I stress this isn't me doing one of those 'I have this friend' scenarios. I feel cross but at the same time, don't want him to get into trouble. But a grown man has to take responsibility for themselves. Wouldn't be able to sleep at night if it was me.0
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I'd be concerned if I was the relative in question, as it could well be them who is going to be identified as getting an income in that they aren't declaring for tax purposes.0
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is the non tax payer getting any benefits such as tax credits .This would affect them ."Do not regret growing older, it's a privilege denied to many"0
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They are quite elderly but think they financially ok so probably not on any benefits. Like you say, they wull be implicated too.0
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I thought all landlords should now deposit the tenants bond with a government agency - this seems like a direct link back to your friend to me. Also whats going to happen when the property is sold - are they going to try to avoid CGT as well?
If you feel strongly about it why not report them. The Revenue make this very easy - see http://www.hmrc.gov.uk/tax-evasion/index.htm0
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