County Court Claim Form and Landlord Tax

HotTrot

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Hammyman

I'd pay it to the LL and let the IR do their own tax collection TBH. Its between them and him, not you.

HotTrot

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clutton_2

hammy this may not be true.... there are circumstances in which non-resident landlords have to payh tax and the taxman expects the tenant or agent to deduct that tax from the rent and pay it on their behalf.

i would hang on to the rent, and go to court with the tax mans paper work, explaining your with-holding the money on their instructions, with a bank statement showing that you still have the money and let the judge decide.

there is a poster on here called tbs624 - if you search their posts they know a lot about this matter....

do whatever the court docs instruct you to and within the time frames they say....

you will need to defend this charge and i suggest a copy of the AST and any relevant documentation plus the Tax mans documents to prove your case. Prepare a short Statement OF Truth outlining how this situation arose, keep it succint and brief, judges dont like waffle, to explain how you got here and how you have tried to resolve the situation.


let us know how you get on

HotTrot

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magpiecottage

Going to court just one week after the money is supposedly due seems excessive.

That aside, I suggest you draw up a simple spreadsheet from the time of the notice from HMRC showing the total rent payable, the amount due to HMRC (20%) and the balance due to the LL.

This will show the total he was entitled to over that period.

Show too, the amount he has been paid by you and the difference that is due.

Also make clear (if true) that you were seeking clarification from HMRC that your figures were correct before making a balancing payment and that you have had no contact from LL or agent prior to the claim being sent to the court and, as clutton says, copies of the HMRC documents showing that you had to deduct the tax.

clutton_2

if you do not go to court then the LL will win by default and you could end up with a county court judgement against you - which will make your life Very difficult indeed.

now that court proceedings have been issued..... go to court and let the judge decide. Small claims courts/county courts are very informal... small rooms, judge in a suit, 3 tables one for the judge, one for you and one for the LL. Take a mate with you for moral support.

The more organised a court bundle of papers you can prepare for your evidence the better - with a list of the documents at the front (each one numbered). Send a copy to the court and one to the LL/Agent - whoever has issued the claim.

If you dont yet have the full tax deduction figures from the Tax man put that in your defence and ask the Taxman for a figure for the court hearing date.

If they have set a court hearing in a town a long way from you, you are entitled to ask for it to be heard in your local court.


The judge will see you as an amateur Litigant in Person who knows nothing of the hcourt system, and the judge will expect a professional landlord / agent to know how to conduct business properly - including their tax affairs - so you will defionitely get a very fair and understanding hearing from the judge.

SouthCoast

What to do when you get a claim form from the court

http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/action_your_creditor_can_take_index_ew/creditor_takes_you_to_court_for_debt.htm

HotTrot

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G_M

You will get NO adverse credit reference on your record unless
a) the court finds against you AND
b) you don't pay what the court says you have to pay.

If HMRC have told you to deduct tax, you should deduct tax. Show this to the court and you should be fine. You will, of course, have to pay the difference between rent due and tax deducted.

Further details of the HMRC rules on overseas landlords here.

Out of interest, how did HMRC find out about your rent and non-res landlord?
And do you know why HMRC are telling you to deduct tax when there is a UK agent involved? Do they realise that?

edit: Agggh! Just realised this a continuation of your earlier thread I hate it when people start new threads on the same topic. Means others don't have the full story (as I didn't, having forgotton what you'd previously posted!)!!!

HotTrot

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