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    #16
    You write that
    1. The son (S) owns the property;
    2. S is named as LL in the tenancy agreement;
    3. You pay rent to S
    4. S is abroad.
    5. Father (F) is managing the property on behalf of S.
    You ask
    Originally posted by AXY View Post
    1) How can I make sure that the person I have been interacting with is properly authorized by the owner to manage and make decisions with regards to the said property?
    To help answer that question, I need to know
    • Why are you dealing with F?
    • Was the instruction to deal with F given to you in writing?

    I also note that points 3 and 4 mean that you should probably be paying part of the rent to the tax man.
    Others here know more than I do, or you could contact HMRC for details.
    There may be legal sanctions against you if you should be paying tax man but do not do so.

    Comment


      #17
      Okay to clarify- I secured the flat through a lettings agency and I had even met F before agreeing to the let.
      Both the agency and myself always referred to the landlord by their last name even to this day and I never communicated with the landlord directly via email or phone before moving in. There was a first name mentioned on the tenancy agreement which I assumed was F's.

      It was only after I had moved in and send the initial email to the agency detailing the said issues around the house that the agency copied F in the email -which had a different first name to the one mentioned in the tenancy agreement. I enquired about this with F when he came around to inspect the issues and he explained that his son S actually owns the house.

      I have never been given explicit information to deal with F nor is F mentioned on the tenancy agreement. But from what I gather the agency has always been dealing with F for all the matters and it might so happen that S is not aware of anything apart from just signing the agreement.

      Comment


        #18
        Please keep to the same sets of references.

        If the Landlord is overseas and you are sending rent money to them and they are UK taxpayers, they have to either show you that HMRC have agreed to the rent being sent in full, or you need to deduct tax at base rate before sending it, and complete a six monthly (usually) simple tax statement of what you have withheld and pass the money to HMRC.

        Not doing so is both a problem for the landlord and for you.

        The uncertainty about the father is only an issue if the work doesn't get done as agreed.
        I'd see what happens before stressing.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #19
          There would not be tax issue as I am paying rent to the landlord's account in UK and not an overseas account.
          Nowhere it is mentioned (either in the tenancy agreement or any of the emails) that the landlord is overseas - this is something I have gathered through discussion with F last week.

          So as far as I am concerned I am discharging my duties as a tenant by paying rent to the landlord who has a registered UK address into their UK bank account.

          Comment


            #20
            Originally posted by AXY View Post
            So as far as I am concerned I am discharging my duties as a tenant by paying rent to the landlord who has a registered UK address into their UK bank account.
            However, that's not correct.
            If you didn't/don't know for sure that the landlord isn't living in the UK, you're probably fine - HMRC aren't going to be interested in you.
            The landlord, though, that's posssibly a different matter - https://www.gov.uk/tax-uk-income-live-abroad/rent

            But get the extractor fan sorted first...
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #21
              It's where the landlord lives, not where they have their contact address or bank account: https://www.gov.uk/tax-uk-income-live-abroad/rent

              HMRC are likely to be sympathetic if you tell them you only recently discovered that the landlord lived overseas. What you don't want is for them to find out for themselves.

              Although the bank account is in the UK, it is difficult for HMRC to identify that the money going into it is taxable.

              Comment


                #22
                I have no way of knowing how long the landlord has been overseas or will be overseas unless I further investigate the same from the agency or father. It could very well be he is overseas on a work assignment for a few months or ever permanently based overseas.

                As a tenant I do not have reasonable grounds to suspect that there is any tax evasion going on and again based on the tenancy agreement I have no reasonable grounds to doubt that he does not fulfil the residency test for UK.

                To give an analogy- there are lot of agency who manage and collect rents on behalf of landlords who are based overseas. The tenant pays the agency as per the tenancy agreement and hence has no tax obligation- again in lot of cases they have no idea where the landlord is based.
                There is a tax obligation for the agency to report to HMRC all the taxable income as they have an agreement with the landlord to send the rent collected minus their fees to the overseas account.

                Comment


                  #23
                  If the agency is collecting the rent, they are responsible for paying the tax. You have previously confirmed that you pay the son, not the agent.

                  Comment


                    #24
                    Originally posted by AXY View Post
                    ITo give an analogy- there are lot of agency who manage and collect rents on behalf of landlords who are based overseas. The tenant pays the agency as per the tenancy agreement and hence has no tax obligation- again in lot of cases they have no idea where the landlord is based.
                    There is a tax obligation for the agency to report to HMRC all the taxable income as they have an agreement with the landlord to send the rent collected minus their fees to the overseas account.
                    It's the person who sends the rent to the landlord living overseas who has the obligation - any other people in the payment "chain" have no involvement.

                    The obligation is essentially on the landlord to get their tax affairs right.
                    HMRC aren't interested in a tenant who isn't an expert in landlord tax law (it's technically an issue, but I've never heard of a tenant having actual problem with HMRC related to it).

                    As before, extractor fan first, this is irrelevant/something for later...
                    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                    Comment

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