Landlords and Tax

Snapelover

On Sunday we moved out of our house and yesterday my new tenants moved in for a 6 month rental. Today the tenancy agreement arrived and it names both myself and husband as landlord. However, I am the sole landlord and will be having the rent paid into a bank account in my name, I am not a tax payer.

Will the fact that my husband is named on the tenancy agreement as landlord mean that he has to declare it to the tax office?

fishpond

Is the property in joint names?

Kevie192

I don't know about your husband, but whatever happens you will have to declare all the income to HMRC even if you are "not a tax payer" and there is no tax due.

Failure to do this is tax evasion.

booksurr

Snapelover wrote: »

Will the fact that my husband is named on the tenancy agreement as landlord mean that he has to declare it to the tax office?

who has to account for the rental income to HMRC depends on who owns the property NOT on who is named as LL

in your case you are married, and I will assume the property was previously your marital home owned by both of you

as such you must split the income 50/50 between you and husband , that is tax law

the only way you can alter the 50/50 share is:
EITHER:
you own the property in unequal shares as tenants in common and you register that fact with HMRC using a Form 17 and then declare the income in accord with your respective shares
OR
you cease to own the property jointly and instead you become the sole owner . To do that you will need to get the Land registry records amended either DIY or via a solicitor

you absolutely cannot simply split the income as you see fit

Snapelover

I own the property solely.

I am fully aware of the HMRC requirements and have already registered with them in order to declare my rental earnings.

G_M

Snapelover wrote: »

.....yesterday my new tenants moved in for a 6 month rental. Today the tenancy agreement arrived
* I can only assume you delegated all responsibility to letting agents? You gave them carte blanche? :eek:

* and either you did not make clear who the landlord is, or they disregarded your instructions.

I suggest you need to get a much firmer grip over the management of your tenancy
and it names both myself and husband as landlord. However, I am the sole landlord and will be having the rent paid into a bank account in my name, I am not a tax payer.

Will the fact that my husband is named on the tenancy agreement as landlord mean that he has to declare it to the tax office?

Read:

Letting Agents (Tips for selecting, and tips for sacking them)

New Landlords (information for new or prospective landlords)

ognum

Snapelover wrote: »

On Sunday we moved out of our house and yesterday my new tenants moved in for a 6 month rental. Today the tenancy agreement arrived and it names both myself and husband as landlord. However, I am the sole landlord and will be having the rent paid into a bank account in my name, I am not a tax payer.

Will the fact that my husband is named on the tenancy agreement as landlord mean that he has to declare it to the tax office?

Didn't you have to sign the tenancy agreement prior to the new tenants moving in?

vuvuzela

ognum wrote: »

Didn't you have to sign the tenancy agreement prior to the new tenants moving in?

Can't agents do that ? ie if it is a fully managed property then the EA are acting on behalf of the LL.

theartfullodger

ognum wrote: »

Didn't you have to sign the tenancy agreement prior to the new tenants moving in?

Agents usually do: Anyway a tenancy for less than 3 years doesn't even need to be written.

I would write & ask how & why & on what authority the agent made up the name of the landlord.

Whoever is named on the tenancy as landlord is the landlord: They do not have to own the place. (Happens a lot when agent takes property as owner's tenant, then agent lets to occupants on AST with agent named as landlord: Do not be tempted to do this.

Who was/is named as landlord on the deposit protection stuff? If it isn't protected yet tell agent to do nothing (but not go over 30 day limit!)

You've got a few options.
a) Live with it, you declare all rent money. Fire agent & offer tenants new tenancy at end of current one, with only you named as landlord.
b) Handle change of landlord name by S3 LL&T 1985
http://www.legislation.gov.uk/ukpga/1985/70/section/3
notices: Should be legal - maybe check with a solicitor who knows about these things.
c) Offer tenants new tenancy, same end date etc etc (different start date) but with correct name: Would make any deposit issues simpler (I think??)
d) Open large bottle of wine...

Cheers!

TheCyclingProgrammer

Kevie192 wrote: »

I don't know about your husband, but whatever happens you will have to declare all the income to HMRC even if you are "not a tax payer" and there is no tax due.

Failure to do this is tax evasion.

Utter rubbish. How can it be tax evasion if there is no tax due exactly?

Taxpayers have no obligation to notify HMRC of anything unless they are chargeable to tax or have already been asked to submit a return. I suggest you read the Taxes Management Act 1970 s7 and 8.

HMRC have their own guidelines for those that they wish to submit returns that don't necessarily align with the legislation but failure to notify HMRC of having no taxable income is most certainly not tax evasion.

LplateSaver

Is this no tax for low income landlords the same for lodgers? I was planning to get lodgers next year but read I have to pay tax on earnings over 4k.