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Our landlord doesn't have a buy to let mortgage

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Comments

  • some would, some wouldn't, don't want to argue, good luck with it
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    bobbarley wrote: »
    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.

    Did you actually READ the link posted 2ce on this thread? HMRC rules are clear. The tenant can be held responsible. Irrespective of what 99% of people believe. Tax law is tax law and that's why experienced LLs on this site post links to the relevant tax web pages. See below, and note the words "have to".

    Which tenants have to operate the Non resident Landlords Scheme?

    Tenants of Non resident landlords have to operate the scheme if:
    • the rent they pay is over £100 a week, and
      either
      • they pay the rent direct to a Non resident landlord, or
      • they pay the rent to a person outside the UK, or
      • they pay the rent to a person who is not a letting agent in the UK
    HMRC Residency may sometimes instruct tenants to operate the scheme even where the rent paid is less than £100 a week.
    HMRC Residency has produced a booklet called Non resident Landlords - Guidance Notes for Letting Agents and Tenants that tells people what their responsibilities are under the scheme.
  • franklee
    franklee Posts: 3,867 Forumite
    Part of the Furniture 1,000 Posts Photogenic
    bobbarley wrote: »
    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.

    If you read the link you will see what matters is who you pay rent to. In your OP you wrote "His and his girlfriend have moved to Australia, and they left their mortgage how it is. Each month we pay money directly into their bank account to cover rent." so you aren't paying the rent to the father, regardless of if they call him an agent he isn't for this purpose.

    You can read the link or not - your choice - but remember this if you leave your head in the sand your bum is likely in the air :D
  • chappers
    chappers Posts: 2,988 Forumite
    Not quite true, the landlord can apply to HMRC to be classed as a non-resident landlord and have rental paid to them at gross value.

    You are of course correct, I did mean to put that, the LL could apply for an exemption ,as an "unless" after my initial statement.

    However as this LL has failed to comply with various other requirements with regards to his mortgage,GSC and contract obligations .Its highly probable he hasn't compied with the tax requirements either.
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