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Sub-tenant refuses to pay rent

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  • Honeylife
    Honeylife Posts: 255 Forumite
    Ninth Anniversary 100 Posts Photogenic Name Dropper
    I am not keen on tax fiddlers.....

    Well the responses on this forum told him/her. ;) Can't think of any other way to spell out that the HMRC is far more concerning than one month 'deposit'
    "... during that time you must never succumb to buying an extra piece of bread for the table or a toy for a child, no." the Pawnbroker 1964

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  • zagubov
    zagubov Posts: 17,938 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    OP, you've a lot to think about. This sounds like a setup to simplify your landlord's life where he's lumbered you with finding and collecting money from the others in the flat so that he's only got you to deal with.

    Trouble is, if you stay in this situation, you'll end up having to pay a fair bit of tax, once your two flatmates get past your £7.5k annual rent-a-room allowance.

    You can get round this, by moving them out, but if you need their income so you can afford the flat, this may mean you need to put up their rent by the amount of extra tax you'll have to pay, or replace them with new lodgers who can put up with that price.

    So basically your lazy landlord's rental set-up is going to end up with you having to do tax returns and pay a lot but be out of pocket, or your flatmates are about to find out how little security of tenure they've landed with.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
  • Jumblebumble
    Jumblebumble Posts: 1,994 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    Your lodgers/tenants your income?
    Which is offset 100% by his outgoings to his landlord leaving net income of zero???
  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Which is offset 100% by his outgoings to his landlord leaving net income of zero???



    I'll let HMRC know that I'd like to deduct my rent and bills from my taxable income too....
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Which is offset 100% by his outgoings to his landlord leaving net income of zero???

    Please point me at the legislation that allows those expenses to be offset from that income?
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 21 August 2019 at 7:08PM
    Which is offset 100% by his outgoings to his landlord leaving net income of zero???
    I never knew I could offset my living expenses against my income before deducting tax. Thanks for pointing that out. Can I also let my 50 properties and pay zero tax if I spend it all on renting a big estate and it's management?

    Which forms do I need to fill in?

    Sarcasm over, it seems that you as well as the OP don't understand the difference between income and profit - hence the term 'Income Tax'.
  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Slithery wrote: »
    I never knew I could offset my living expenses against my income before deducting tax. Thanks for pointing that out. Can I also let my 50 properties and pay zero tax if I spend it all on renting a big estate and it's management?

    Which forms do I need to fill in?

    Sarcasm over, it seems that you as well as the OP don't understand the difference between income and profit - hence the term 'Income Tax'.



    We should be fair slightly on this point: Pensions for example can be deducted, so there are some circumstances.


    This just isn't one of them
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    Which is offset 100% by his outgoings to his landlord leaving net income of zero???
    and the award for comedian of the day goes to Jumblebumble and his tax joke
  • 00ec25
    00ec25 Posts: 9,123 Forumite
    1,000 Posts Combo Breaker
    edited 21 August 2019 at 7:49PM
    D8D wrote: »
    Hi all.

    I'm a lead-tenant renting a flat as a whole from my landlord, the tenancy is solely in my name, and [STRIKE]sub[/STRIKE]letting the other two bedrooms to [STRIKE]subtenants[/STRIKE] lodgers
    D8D wrote: »
    6. The rent is £600 per month, plus all-inclusive bills of £80, payable in advance on the 20th day of each month for the month ahead.
    so, 2 lodgers each paying £680 per month.

    annual income £16,320
    rent a room allowance 7,500
    net taxable income 8,820

    say Op is basic rate taxpayer (ie has other income of at least £12,500) the tax payable is £1,764

    no other deductions WHATSOEVER can be made against that

    congratulations OP, you have just evaded £1,764 of tax for this year - how many earlier years have you done same in?
    D8D wrote: »
    there's no income/profit, the occupier simply pays a share of the rent. The rent he pays me is what gets paid to the landlord.
    if you seriously believe what you say makes any sense at all then you should urgently find someone to teach kindergarten level landlord and tenancy law before you progress to primary school level "lodger agreements" and then "advanced" subjects such as tax.

    You are SOLE tenant of the entire property.
    You and you alone are liable for the entire rent to your LL.
    Where you get the money from to pay your LL is called YOUR INCOME, it is not from a share of your liability which you expect someone else to pay on your behalf since the payment is made in your name, not theirs .
  • theartfullodger
    theartfullodger Posts: 15,701 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    00ec25 wrote: »
    so, 2 lodgers each paying £680 per month.

    annual income £16,320
    rent a room allowance 7,500
    net taxable income 8,820
    .............
    Nope, that's not how rent a room works: IF TOTAL rent income pa is less that £7,500 nothing needs declaring.



    Otherwise, declare the lot: Income £16,320: Less valid ( VALID ! ) expenses, and HMRC can inspect/audit to make sure we're all honest.
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