Landlord wants to evict me and move back in!

G_M

Given how few posters here knew of the overseas LL tax issue till this thread highlighted it, and how few tenants know of it, not to mention how few LLs, and even agents, I'd be really interested to hear of a single case of HMRC chasing a tenant for a LLs tax.

Yes, clearly the tax laws permit it. But does it ever happen.....?

beeg0d

MissMoneypenny wrote: »

I doubt if many tenants know. I can't see landords who are trying to avoid paying taxes, telling their tenants this.

Ive never checked but is the tax liability information included in the governments "how to rent" booklet that every tennant MUST be provided with at the start of every tennancy?

If its not included in the booklet it seems like quite a major ommision from a mandtory government panphlet thats supposed to set out the rights and responsibilitys of a tennant.

G_M

No.


How to rent (mandatory government leaflet)

molerat

beeg0d wrote: »

Ive never checked but is the tax liability information included in the governments "how to rent" booklet that every tennant MUST be provided with at the start of every tennancy?

If its not included in the booklet it seems like quite a major ommision from a mandtory government panphlet thats supposed to set out the rights and responsibilitys of a tennant.

Nothing there about tax. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/496709/How_to_Rent_Jan_16.pdf

MissMoneypenny

G_M wrote: »

Given how few posters here knew of the overseas LL tax issue till this thread highlighted it, and how few tenants know of it, not to mention how few LLs, and even agents, I'd be really interested to hear of a single case of HMRC chasing a tenant for a LLs tax.

Yes, clearly the tax laws permit it. But does it ever happen.....?

I would hope not as surely HMRC are delighted to get all the taxes owed for past years?

Interestingly, a son of a friend of mine thought his tax was being deducted from his let by the letting agent. LL lives in the UK. When I pointed out his error he went to an accountant for help, who then approached HMRC for him. He paid all his back taxes for a few years but HMRC did not fine him.

beeg0d

G_M wrote: »

No.


How to rent (mandatory government leaflet)

Well that seems like a MAJOR ommision to me, concidering that is a government issued leaflet on the rights and responablitys of a tennant AND it would be a department of the government (HMRC) taking tennants to court (assuming they dont/cant pay up) for a very little known rule. It may be worth pressuring the department responable for the leaflet to include this issue in the next revision.

MissMoneypenny

beeg0d wrote: »

Well that seems like a MAJOR ommision to me, concidering that is a government issued leaflet on the rights and responablitys of a tennant AND it would be a department of the government (HMRC) taking tennants to court (assuming they dont/cant pay up) for a very little known rule. It may be worth pressuring the department responable for the leaflet to include this issue in the next revision.

And contact our MPs.

Edit, just emailing mine now.

beeg0d

MissMoneypenny wrote: »

And contact our MPs.

Edit, just emailing mine now.

I will be doing so in the morning (its quite late in the evening where i am (on holiday) and proberlly a few too many beers for an email to an MP).

gingercordial

G_M wrote: »

Given how few posters here knew of the overseas LL tax issue till this thread highlighted it, and how few tenants know of it, not to mention how few LLs, and even agents, I'd be really interested to hear of a single case of HMRC chasing a tenant for a LLs tax.

Yes, clearly the tax laws permit it. But does it ever happen.....?

I have no idea. It isn't my sphere, though when I was a trainee back in the day I did lots of non-resident landlord returns for overseas corporate clients, all had to be hand-filled paper copies. Of course those were the ones with directions in place so we never saw the consequences for the tenants of the ones that didn't!

I do have experience of the payer being pursued for failure to withhold other taxes (on cross-border interest or PAYE on failed self-employment) so it isn't beyond my imagination that they would use their powers to go after a tenant.

That said, in this case if the landlord were to be back in the UK fairly soon at least HMRC could pursue them and not the tenant, as opposed to one who is still overseas and so not worth more than a token effort on their part. Still, I wouldn't want to risk it.

MrNiceGuy_007

Update from HMRC, which will be confirmed in writing within the next 7 – 10 working days. For the benefit of other people in my situation, I will of course post this once received.
Information they requested to perform search.

1: My surname
2: Postcode
Result: LL not registered!

Questions.

Q: I asked if tax was deductible from rent
A: HMRC said, tax is deductible if the landlord is NOT registered with the scheme. It’s not a legal requirement for the Landlord to register, but it is a legal requirement for the Landlord to inform HMRC they are living outside the UK.

Q: If the tenancy continued until the end, would I be liable for the taxes due.
A: No, because the landlord failed to inform HMRC they are living outside the UK.

Q: How is tax paid?
A: Quarterly bill is sent out from HMRC to home address.