Our landlord doesn't have a buy to let mortgage

franklee

Running_Horse wrote: »

It is not the tenants responsibility to pay his landlords tax bill.

Artful has already posted the correct link to explain that a tenant can be responsible, here it is again:

http://www.hmrc.gov.uk/CNR/nr_landlords.htm#6

The revenue will chase a tenant over this as it saves them having to go after someone abroad which is harder to do. The tenant either needs to satisfy himself that the landlord is resident, or see written evidence from HMRC that the landlord has registered for approval to receive rent with no tax deducted, or if none of these apply the tenant who pays rent directly to a non-resident landlord is responsible for deducting the tax.

It's easy for landlords to sit here saying it ain't true but it isn't them who will incur the tax liability, So do read the link!!!

Leon_W

N79 is correct. You can have longer ASTs, BUT if the property is mortgaged then it is generally a condition of most mortgage contracts (buy to let or consent to let) that an AST can be for no longer than 12 mnths. This obviously enables a lender to get possession of the property.

bigblackdog

note to you landlord bashers .... landlord can get exemption from the tax being deducted , i am a prospective landlord going overseas and want to keep my house for when i come back , so am doing that myself ....ask an accountant

G_M

bigblackdog wrote: »

note to you landlord bashers .... landlord can get exemption from the tax being deducted , i am a prospective landlord going overseas and want to keep my house for when i come back , so am doing that myself ....ask an accountant

Yes but then the LL should tell the tenant about this - in fact show the tenant the HMRC exemption.

Otherwise the tenant has no way of knowing whether such exemption exists and must assume he (the tenant) may be chased by HMRC.

A wise tenant with an overseas LL would deduct tax UNLESS the LL satisfied him that HMRC exemption was agreed.

Or unless he was paying a (UK) agent in which case the tax onus falls on the agent. And a wise overseas LL would have a UK agent a) as it's impossible to manage a property rental from overseas and b) the LL has to provide a UK address for Notices.

bobbarley

If a landlord goes overseas and becomes an ex-resident, surely it is his responsibility to inform the tenant that they need to hold back 22% for tax reasons? Also, as a tenant you don't know 100% the landlords financial situation and tax status for definite.

If you stopped a thousand people on the street I bet 99% of them wouldn't even know that law existed.

bobbarley

Ok, just had a browse through the contract. The break clause states:

"The Tenant shall not have the right to bring the Tenancy to an end before the expiry date (01/01/2011) of the term unless the Landlord consents to this in writing."

That pretty much sums it up really.

I guess the best way to pitch it to him is after the 18 month contract has lapsed we can give one months notice at any time to vacate, so surely it would be better for him to let us leave early, with plenty of notice (definitely more than one month) so he can arrange for a new tenant?

Also, the landlord has his father down as agent for the property. I think I'm right in saying that if the landlord has an agent, they're responsible for any tax matters.

tucbiscuit

best thing to do is to tell him you want out early and ask him to market it and then be helpful to him and you by being flexible with viewings, making the place attractive when people come to view etc.

bobbarley

We'll still need to find a house first and get an offer excepted before asking the landlord, or he might find a new tenant early and want us out quickly. It's going to be tough work getting a new tenant in around the same time as we leave! Otherwise we run the risk of the being homeless scenario.

tucbiscuit

ok, if I'm being honest it sounds like you want to have your cake and eat it, good luck

bobbarley

And you think someone in our position wouldn't think the same thing?