Landlord insists on rent paid by cheque....tax avoidance??

westv

Tax evasion (which is illegal) not tax avoidance (which isn't).

Tiddlywinks

westv wrote: »

Tax evasion (which is illegal) not tax avoidance (which isn't).

Eh? Nice 'sound bite' but what has this to do with the initial query? Why is this evasion? Payments by cheque are just as obvious to an auditor as a standing order receipt.

PPPingu

my understanding is:
Standing Order-always leaves from the one account (tenant) and does into another account (LL) and this will be the same month in, month out.
Cheque - always leaves from the one account (tied to chequebook), but as the cheque is addressed to a persons name, can be cashed into any account of that name (LL could have many accounts in their name), so can be changed each month.

westv

westv wrote: »

Tax evasion (which is illegal) not tax avoidance (which isn't).

Tiddlywinks wrote: »

Eh? Nice 'sound bite' but what has this to do with the initial query? Why is this evasion? Payments by cheque are just as obvious to an auditor as a standing order receipt.

The thread title and several posts in the the thread mention avoidance when they (incorrectly) meant evasion. That was the concern of the original question.

peaches48

Heard from my bank that you will no longer be able to use a Guarantee Card (Debit Card) to guarantee a cheque when written, after 30 June 2911. So anyone receiving a cheque for payment of goods and services will have to take it on faith that the payment will go through.
Does the rent cheque have the cheque guarantee number written on the back. If so, you could inform the landlord of this, to try and get him to accept a S/O instead. If he only ever receives cheques from all his tenants (assuming he has more than one), then he is going to be biting his nails waiting to see if all the cheques clear!

Tiddlywinks

PPPingu wrote: »

my understanding is:
Standing Order-always leaves from the one account (tenant) and does into another account (LL) and this will be the same month in, month out.
Cheque - always leaves from the one account (tied to chequebook), but as the cheque is addressed to a persons name, can be cashed into any account of that name (LL could have many accounts in their name), so can be changed each month.

IF the LL wanted to evade tax on this letting then he would have to be consistent in his treatment of the payment so it wouldn't matter whether the payment was by SO or cheque as long as it went into the same account each time. It is just as easy to 'hide' the payment of a SO into another account as it is a cheque.

mchale

Eton_Rifle wrote: »

Seems to me he's the one putting himself at risk here. I agreed once to a tenant paying me by posted monthly cheque and I'd never do it again - it's direct debit or bust now!

Bear in mind its a lot easier to sue someone for non payment if you have a stopped/bounced cheque in you possession

ViolaLass

downshifter wrote: »

(Mind you, she's got a point about banks)

Really? How many people do you know who have personally lost money because of their bank's behaviour?

Marvel1

suzy_g wrote: »

Its just that when he fisrt signed the contracts and paperworkk etc they asked him to fill out a standing order form which he did but when it came to the day the first rent was due they knocked on the door asn asked for a cheque and have done so ever since (been 2 years) he asked them why they aren't going ahead with standing order but they just said "oh well we will see" and kind of brushed him off

I wouldn't be happy with that, assuming they knock on the door monthly for a cheque.

sonastin

If you really don't want to pay by cheque any more you could try the "I haven't got any more cheques in my chequebook and the bank says it will take up to 10 working days to send out a new one. I don't want to be late paying my rent - how about I set up a standing order so that you get the money straight away?" approach.