Income tax on subtenancy rent?

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    Income tax on subtenancy rent?

    Hello all,

    I've recently moved out from my old flat where I used live under a subtenancy agreement with a current tenant. The landlord didn't live there.
    I used to transfer a monthly rent to his bank account, and consequently he paid his rent to the landlord.

    Should have he paid a tax income on the money I've transferred him?

    The thing is that he refused to refund me with one week rent when I moved out.

    Is reporting the fact that he didn't pay any tax on the amounts he has received from me for two years a credible threat?

    #2
    Anyone (if they own the place, rent it from a landlord..) can rant a room out (or rooms) up to total of £4250 pa without needing to declare that rent: "Rent-a-Room Scheme".

    Some benefits however (eg Housing Benefit ) need to have any such income (and others..) declared to tax man..

    Do you think the tenant's landlord knew about you as lodger??

    You may find there mere suggestion that you inform HMRC (for income tax) & DWP or council (for benefits) or his landlord might "encourage" him to pay.... Just to assist them all in their record-keeping...

    Did the person you paid the money to also live there permanently all the time you were there??

    Was a deposit taken from you>??
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      Anyone (if they own the place, rent it from a landlord..) can rant a room out (or rooms) up to total of £4250 pa without needing to declare that rent: "Rent-a-Room Scheme".
      I've roughly transferred him £6000 per year.

      Do you think the tenant's landlord knew about you as lodger??
      Sure he did. I've dealt with him in directly many occasions

      Did the person you paid the money to also live there permanently all the time you were there??
      Yes he was living there all the time

      Was a deposit taken from you>??
      Yes, but I had that back. I know it's ridiculous.

      It's my intention to text him that I've spoken with an adviser that told me that he may be liable to pay a tax income on the rent I've transferred him. And that I will also notify the landlord of this incident, and that he might not be happy of being involved into this nuisance.

      Comment


        #4
        Can't see the landlord being bothered if he knew anyway...

        In your shoes I'd just ask him to refund you £xx as you were thinking of informing HMRC about tax ...( neither you nor I know if the person you paid has declared his income or not..).

        Even if I got refunded I'd let HMRC know...here..
        http://www.hmrc.gov.uk/reportingfraud/

        IMHO we don';t want tax cheats in our country any more than we want benefit cheats.

        Cheers!
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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