advice needed re housing benefit

fluffy70

Hi,

I'm hoping that someone out there may have direct experience of this and can advise?

we currently rent a 3 bedroomed property on a private tenancy arrangement and we both work but are classed as low income. We want to make a claim for Housing benefit to help us out financially, and we know that we would be entitled to about £200 a month towards our rent and possibly a small deduction from the council tax (which we are struggling to pay as we don't have enough money coming in). We have one child and she goes to nursery 3 days a week while we work and my fiance can't look after her while I work because working hours clash.

Our issue is that the landlord has said to us that we must NOT claim housing benefit as he will get into trouble with the tax office and the claim could be linked from the council to the tax office and they would trace it back to him - he's not making a profit from it - basically we're just paying his mortgage. Is it true that it can be traced back to him and that he would be in trouble? We could just about survive if we don't claim housing benefit but life would be extremely hard for us.

He does have a BTL mortgage so it's not a case of that being a problem.

Thanks in advance

M

karenx

Some insurance policys wont allow the landlord to rent to someone who pays using housing benefit. Could invalidate his insurance. Which could be a reason why he doesnt want you to do that.

fluffy70

Hi karenx

no it's not that - he's got the appropriate insurance, gas cover and a Buy to let mortgage. He's saying it's because he'll get into trouble if the tax office find out and he's talking about putting himself on the electoral register there to make it look as if he still lives there

am seriously thinking that we may have to just struggle as he's a fmaily friend who helped us out when we had nowhere to live

karenx

He should be declaring it all on his tax return the money he makes/doesnt make. So could be that also.
I would seek advice from CAB if I were you. Surly thats illegal to register himself as living there when he is not.

Jowo_2

It's a real shame that your landlord complies with his responsibilities in many respects but then chooses to fly under the radar to avoid income tax and CGT because it disadvantages you. He gets to avoid his tax exposure and you get to lose your benefit entitlement and the right to vote, perhaps. Even properties that break even or run at a loss should submit a return.

Why are you certain he has a buy to let mortgage? I only say this because I wonder whether HMRC aren't smart enough to look for tax returns for properties that specifically have a btl mortage. I don't know this as a fact, just wondering whether he could be defeated that way.

How feasible is it for you to find another property in the local area where the landlord isn't dodgy?

vaporate

fluffy70 wrote: »

Hi,

I'm hoping that someone out there may have direct experience of this and can advise?

we currently rent a 3 bedroomed property on a private tenancy arrangement and we both work but are classed as low income. We want to make a claim for Housing benefit to help us out financially, and we know that we would be entitled to about £200 a month towards our rent and possibly a small deduction from the council tax (which we are struggling to pay as we don't have enough money coming in). We have one child and she goes to nursery 3 days a week while we work and my fiance can't look after her while I work because working hours clash.

Our issue is that the landlord has said to us that we must NOT claim housing benefit as he will get into trouble with the tax office and the claim could be linked from the council to the tax office and they would trace it back to him - he's not making a profit from it - basically we're just paying his mortgage. Is it true that it can be traced back to him and that he would be in trouble? We could just about survive if we don't claim housing benefit but life would be extremely hard for us.

He does have a BTL mortgage so it's not a case of that being a problem.

Thanks in advance

M

That is the LL problem not yours. Do what is in your interest not hers/his.

Surprise surprise another criminal landlord.

fluffy70

Jowo wrote: »

It's a real shame that your landlord complies with his responsibilities in many respects but then chooses to fly under the radar to avoid income tax and CGT because it disadvantages you. He gets to avoid his tax exposure and you get to lose your benefit entitlement and the right to vote, perhaps. Even properties that break even or run at a loss should submit a return.

Why are you certain he has a buy to let mortgage? I only say this because I wonder whether HMRC aren't smart enough to look for tax returns for properties that specifically have a btl mortage. I don't know this as a fact, just wondering whether he could be defeated that way.

How feasible is it for you to find another property in the local area where the landlord isn't dodgy?

Hi

we haven't lost our right to vote as I registered us when we moved in. We're registered there obvioiusly also for council tax etc. I did find out that his wife works in the tax office and he has said that she'd lose her job! Yes definitely a BTL mortgage as the house was rented through a letting agency a couple of years ago and the tenants then were on benefits and getting full HB so I don't know how it has changed!! Can't look for another property as we don't have a deposit, credit is too low for an agency to look at us and ourt last house was reposessed. Think have decioded that we will have to go without and I can find some more part time work like catalogues etc. It's just not worth the hassle

daska

I'm not at all sure that Housing check the type of mortgage when considering applications from tenants, that's a question someone else will probably be able to answer.

I am sure that few, if any, letting agents check. I know of several people who let their houses without telling their mortgage lender (not us!). Naughty but not uncommon.

fluffymovie

You have a right to make a claim for HB in rented accommodation. If the landlord is guilty of tax evasion, then that is his issue.

We do share information with the Tax office but not sure if we tell them about money paid as we pay tenants!

Jowo_2

fluffy70 wrote: »

Hi

we haven't lost our right to vote as I registered us when we moved in.

so did you keep his name on the register and if so, has this broken the legislation by putting down someone who doesn't actually live there?

if the property is in england/wales, does this mean he's also decided not to protect the deposit in a tenancy deposit scheme?

it's really strange that his wife, who should be aware that little or no tax is payable when there is little or not profit, would be willing to risk her job over this deception? i'm sure there's plenty of ways the HMRC can find out about landlords who aren't declaring their income, though I understand the main way is through letting agents, LHA system or newspaper adverts.

perhaps their main issue is to avoid CGT when they sell in the future as there's a swingeing loss of around 18% of the gain to the taxman.

but if you've got an AST, and as LHA is paid directly to tenants, how would he know if you are in receipt of it?

the taxman could come knocking for him at any time after being alerted to the property through various means.

fluffy70

Hi

he's not on the electoral register for the property now, it's just one thing that he was talking about. I would have thought that if they wanted to check him out they would have seen the info on the Land Registry....but terrified to apply as he is a family friend (a very close one). Also, we didn't pay a deposit as we had no money and no home. It was all good grace because of the hostory of our families.