Landlord income Tax? -who's responsibe for paying the income tax?

Jane_gs

The landlord doesn't have to be the owner of the property.

If a property is rented out, then this is a form of rental income, so it has to be declared to HMRC.

If the landlord is not the owner of the property, then who is responsible for paying the tax ? the landlord ? or the owner of the property?

Guest101

The person being paid the money.

are you talking about subletting??

G_M

The landlord receives the rent.
The landlord pays the income tax.

If the landlord is abroad, his UK agent pays the income tax (unless otherwise agreed with HMRC).

If the LL is abroad but has no UK agent, the tenant pays the income tax (HMRC )

Jane_gs

sometimes the landlord is not always the owner of a property.

Yorkie1

Jane_gs wrote: »

sometimes the landlord is not always the owner of a property.

It might help if you were a little less cryptic and actually told us what is really behind your question. What circumstances do you have in mind?

Werdnal

Yorkie1 wrote: »

It might help if you were a little less cryptic and actually told us what is really behind your question. What circumstances do you have in mind?

ITA, give us the exact scenario, and we will give you the exact answer.

Are you tenant, owner, landlord, innocent bystander, nosey neighbour, jealous lover or none of the above? :rotfl:

lavalamp

I would say regardless of who owns the property or who the landlord is, it's the person who is ultimately putting the rent into their own account for their own use that is liable for the tax.

00ec25

awpvicki wrote: »

I would say regardless of who owns the property or who the landlord is, it's the person who is ultimately putting the rent into their own account for their own use that is liable for the tax.

that statement we can say with certainty is wrong

take the case of a married couple letting their old home. The wife may be a non taxpayer so wants all the income in her name but the husband is a joint (or sole) owner of the property then the income is (at least) in part the husbands, so it absolutely does not follow the tax liability is with the recipient of the money - which is what you incorrectly imply

lavalamp

00ec25 wrote: »

that statement we can say with certainty is wrong

take the case of a married couple letting their old home. The wife may be a non taxpayer so wants all the income in her name but the husband is a joint (or sole) owner of the property then the income is (at least) in part the husbands, so it absolutely does not follow the tax liability is with the recipient of the money - which is what you incorrectly imply

Sorry, I was being too basic with my explanation, but I am sure you know what I was getting at. I still don't think my statement was 'wrong' as such, just perhaps not as in-depth as yours. Thank you for clarifying.

happycamel_2

The owner of the asset is the one liable for the tax, however, that may not be the entity that pays the money over to HMRC (eg where there are agents involved).

Werdnal

happycamel wrote: »

The owner of the asset is the one liable for the tax, however, that may not be the entity that pays the money over to HMRC (eg where there are agents involved).

Another slight misconception - Letting agents rarely calculate and pay the HMRC the LL's tax liability - unless perhaps its a non-UK resident LL. Even when using an agent, the LL is normally responsible for their own tax declaration, unless they employ an accountant to handle it for them. How are agents supposed to have access to the LL's earnings etc, to be able to complete their tax forms for them? Income is taken as a whole, regardless of its source, so only the LL or his appointed financial representative has full access to all information required to complete the LL's tax return.