Paying tax on my rent?

booksurr

johnbusby wrote: »

Possibly Im missing something here but I can't see why your chosen occupation would have anything at all to do with your obligation to pay tax?

Surely tax evasion is tax evasion no matter what you do for a living?

correct, evasion is evasion even for crown servants. However, military discipline takes a dim view of breaches of civilian law where that exposes you to being a potential security weakness that could be exploited by "others" so there can be additional repercussions for forces personnel depending on the attitude of their unit

in terms of income tax it has no effect at all, #3 is dreaming about special rules iro forces personnel (such applies to US troops not UK troops)
BUT
in terms of capital gains tax then forces personnel fall under the job related accommodation rules and so are allowed to retain private residence relief if they sell a property they own but don't live in

forces personnel do get a special treatment in respect of IHT and council tax but neither is relevant here

Emmylou_2

If you haven't told the (buildings) insurance company that your property is tenanted, rather than you living there (or it being empty or whatever they think it is) then yes, they can refuse to pay out on a claim. They can (and do) void policies "ab initio" (from the outset), will refund your payments (less admin charges) and then you're on your own. They will say that it's because having tenants puts you in a different "risk category" and therefore they didn't charge you the right amount of insurance.

Thrugelmir

benjus wrote: »

Are you making an informed comment or is this just something like that myth that comes up all the time on the motoring branch about not having an MOT automatically invalidating your car insurance? Do you have anything to back up your statement? On what basis would they refuse an insurance claim?

Depends on the terms and conditions of the policy that was applied for. So yes, insurers can void policies.

Annie1960

Don't forget that you may also be liable for CGT as and when you sell the property.

00ec25

Annie1960 wrote: »

Don't forget that you may also be liable for CGT as and when you sell the property.

liable? Yes
have to pay any? No

he will be 100% covered by tax relief leaving him with zero taxable gain

loony767

You can get an accountant to do your first year claim for you then "copy" what they did for all following years but beware not all of them realise what you can claim for or don't ask the right questions on what you spent. Save receipts for everything you spend on the house and self assess yourself is my option including fuel receipts and accommodation for inspection and maintenance visits to the property if you live far enough away like I do.
Also you can back date any losses such as paying mortgage interest whilst the house is between tenants.