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Interest on deposit

2

Comments

  • HotTrot
    HotTrot Posts: 97 Forumite
    edited 13 January 2011 at 5:48PM
    ..................................
  • diable
    diable Posts: 5,258 Forumite
    A good landlord should make allowances for a good tenant if you are a few days late with the rent and the landlord knows about it then there should be no issue.
  • HotTrot
    HotTrot Posts: 97 Forumite
    edited 13 January 2011 at 5:49PM
    ................................
  • Meatballs
    Meatballs Posts: 587 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 11 December 2010 at 12:06AM
    http://www.hmrc.gov.uk/cnr/nrl_guide_notes.pdf has more details if you haven't found it already:

    Section 42A(3)
    ICTA 1988
    6.2 Tenants have the right to deduct any tax they have to pay under
    the Scheme from their rent, or from any other money owing to the
    non-resident landlord. They also have the right to recover from
    the landlord any tax they have to pay under the scheme where they
    did not deduct it from their rent or other money owing.

    I would doubt most deposit schemes have much idea about this so I would ring them up and find out.

    If you hadn't spoken to HMRC already I would have said duck head in sand and ignore it. But as you have I would definitely get some more professional advice? Tried Shelter?

    Work out how much tax you owe for 4 months rent as you may need to reduce your final rent payment by that amount by the sounds of it... Retrieving that tax from an overseas LL wouldn't be simple.
  • HotTrot
    HotTrot Posts: 97 Forumite
    edited 13 January 2011 at 5:49PM
    .................................
  • I'd talk to CAB and/or Shelter... You'd probably need to provide documentation of the above to the TDS and even then I wouldn't think they would understand it.

    I provided quotes of their own website's case studies which they then said 'has claimed xxx from case study'. It seemed like it was too hard for them to enter in a link and read their own published documentation.
  • HotTrot
    HotTrot Posts: 97 Forumite
    edited 13 January 2011 at 5:49PM
    .............................
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    if you look through posts on here by a poster tbs624 - this person knows all about the regs re tenants paying overseas landlords tax b ills... and yes... tenants do have to do it.. and there will be a downloadable leaflet on HMRC website about it which you can send to DPS when you come to claim back your deposit.....
  • What would I do? I'd forget about making any deductions from the rent for tax. The Revenue are unlikely to chase you for it and they'd have to find you first. As you've said the TDS don't understand it so I just wouldn't want to open up the possibility of having that as part of any arbitration. Withholding part of the rent is guaranteed to set your landlord on fire and they sound like the sort of a-hole it would be best to not try and wind up. I'd do all I could to ensure that the LL keeps any discussion about deductions within the TDS arbitration process if I could.
  • HotTrot
    HotTrot Posts: 97 Forumite
    edited 13 January 2011 at 5:49PM
    ...........................
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