BTL/Lodgers

DRFC1879

I saw this in the weekly MSE mail and thought it was quite an interesting (if morally dodgy!) idea.


http://www.moneysavingexpert.com/family/make-money?utm_source=MSE_Newsletter&utm_medium=email&utm_term=12-Apr-16-v1&utm_campaign=nt-bignote-three&utm_content=5#lodger


If you've got one BTL property, could you register it as your main address and declare your tenant as a lodger to get the rent money tax free? For most places outside of London, a year's rental income would be in the region of £4800 to £7200 (£4-600 pcm).

Person_one

That would be fraud.

missbiggles1

DRFC1879 wrote: »

I saw this in the weekly MSE mail and thought it was quite an interesting (if morally dodgy!) idea.


http://www.moneysavingexpert.com/family/make-money?utm_source=MSE_Newsletter&utm_medium=email&utm_term=12-Apr-16-v1&utm_campaign=nt-bignote-three&utm_content=5#lodger


If you've got one BTL property, could you register it as your main address and declare your tenant as a lodger to get the rent money tax free? For most places outside of London, a year's rental income would be in the region of £4800 to £7200 (£4-600 pcm).

Whatever gave you the idea that was what the article's suggesting?

DRFC1879

It clearly wasn't suggesting that. I just thought it could be a legal (if morally questionable) loophole.

theartfullodger

We don't want tax cheats in our country, any more than we want benefit cheats or any other sort of crook.

Stone me, what ever happened to those Great British traditions of decency & fair-play??

missbiggles1

DRFC1879 wrote: »

It clearly wasn't suggesting that. I just thought it could be a legal (if morally questionable) loophole.

Well, clearly you thought it was because you wrote "I saw this in the weekly MSE mail and thought it was quite an interesting (if morally dodgy!) idea."

marksoton

Quite frankly i'm sick to death of these BTL and SDLT threads.

Either do the correct research or don't become a bloody LL!

DRFC1879

For the record I don't like tax dodgers any more than the next man. Just thought I could've seen a loophole in the regulations. I'll keep it to myself next time!

Guest101

Apart from anything else, your tenant wouldn't agree.


You wouldn't be living there, eventually you'd be caught out


Taxman would come knocking, and your lender may withdraw the mortgage.

DRFC1879

Aye, that'd be enough to put folk off!

AnotherJoe

NOt only is it fraud, but your lodger might cotton on and then would be able to blackmail you. If you wanted them gone, or a rent rise, they could drop hints about informing the mortgage company & the HMRC. Utterly stoopid idea. Worse than one of Baldrick's 'cunning plans'