Landlord tax evasion

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    Landlord tax evasion

    I know a couple of people who I don't think declare rental income for tax purposes. I know that one of these has a consent to let for unlimited time, and not an official buy to let mortgage. Is that a reason why the so called hunter system may not be catching them? Could it also be that he lives (with family) in a different council area than the flat he lets? I'm just wondering how he hasn't got caught.

    #2
    The Hunter System kicks in only when the lender through its underwriting processes for a new purchase or remortgage discovers irregularities and as a result rejects the application and places other lenders on alert that the individual(s) have made fraudulent declarations/ produced false documentation in an attempt to procure finance or where their activities are reported to the lender. Even if the Hotline is used in reporting tax evasion to HMRC will not trigger a registration on the Hunter System.
    Anyone who fails to disclose rental income on their Self Assessment will fall at the first hurdle with their lender since they will have an impossible job explaining why they have let a property with the consent of the current lender but have failed to disclose rental income on their tax returns.For such people I have not a shred of pity with what follows.

    Comment


      #3
      Surely it is duty of all loyal British citizens to alert the authorities to any tax (or benefit) cheats...or any other crook or cheat. Stone me, if I'm paying tax - I want others to pull their weight also.
      https://www.gov.uk/report-an-unregis...er-or-business

      I'd certainly grass these little un-patriotic disloyal little cheats up if I knew them: Indeed, I did just that re. a tenant subletting and getting shed-loads of undeclared rent income - and I know HMRC took action.

      £5 says these sh*ts are fiddling elsewhere also - eg no landlord insurance, not bothering with EPC of GSC or safe electrics: Not the sort we want as landlords if so!

      Best regards to all!
      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...

      Comment


        #4
        Hi theartfullodger
        I share your views 100% , as an individual and as a broker I have total disdain for anyone who thinks they can circumvent the system both legal and tax, and don't take me down the benefits route as I have seen too many abusers of the system to make me feel comfortable.

        As someone with a broking business and property I would never try to undertake such tactics as I fully understand and accept what the ramifications are and indeed if I whereto find someone who was abusing the system I would definitely go to any lengths to report the abuse including bringing the matter to the attention of the mortgage provider or HMRC. If we all paid what was legitimately due just maybe the state coffers would be better than they presently are.

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