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TODAY'S OTHER NEWS

Tenants can pay the full rent, say most landlords in survey

A survey suggests that 77 per cent of  buy to letinvestors believe their tenants can pay full rent during the Coronavirus outbreak.

The survey is small however - only 200 landlords - but it suggests that 16 per cent of landlords have voluntarily offered tenants a rent reduction of anything from 20 to 100 per cent. 

Mike Parkes of GoSimpleTax, the firm behind the survey, comments: “It’s worth saying that landlords won’t pay tax on rent they don’t receive if they elect to report their rental income and expenses on the ‘cash basis’. Landlords will be able to use this basis of calculating income and expenses for their self-assessment tax return if their rental income from residential tenants is less than £150,000 in the year.

“If the deferred rent is received in a subsequent year, it will be taxable on receipt but if it transpires that the rent is never paid, again, this does not present a tax problem. 

“It is positive to see that landlords are in open discussion with tenants, and that a large majority of renters have the ability to continue paying full rates. In such an unparalleled situation, it makes sense for all parties to keep communicating regularly and to be open with each other about their respective situations.”

  • Paul Barrett

    FFS has this Go Simple idiot NOT ever heard of S24!!!!!!!!!!!!!!!!!??????????

    LL are forced to pay tax on mortgage interest which is fictitious income.

    With no rent how are mortgaged sole trader LL supposed to pay S24 taxes!!!!!!!!!!!!????????????????????

    It seems even those involved in LL taxation have no idea what they are doing.
    It is bonkers enough that LL are taxed on fictitious income with Govt then preventing LL from attempting to gain income but can't because they aren't allowed to evict feckless rent defaulting tenants.

    The world has gone f####### crazy.
    The eviction ban has highlighted the ludicrousness of the S24 tax policy.

    I've never read such a load of b######s from a supposed taxation expert.
    Absolutely clueless!!!

    This is the situation mortgaged sole traders are in.

    They are charged S24 tax on fictitious income.
    They won't have an rent from feckless rent defaulting tenants to pay a mortgage.
    If they can't pay the mortgage then the lender will repossess.
    The lender will then come after LL assets to pay for any shortfall probably bankrupting the LL making him homeless.
    To top it off HMRC will want S24 taxes on the property that was repossessed.

    Oh!! Yes and the feckless rent defaulting tenants get to walk away scot free.
    No amount of STUPID discussions with the tenant about a payment plan will ever cause tenants to pay.

    LL are not discussing anything with their tenants.
    They either pay up or get out.
    Only the stupid eviction ban is preventing LL booting out rent defaulting tenants.

    A simply outrageous policy.
    Govt is simply presuming on LL that they will resource mortgages irrespective of zero rent being paid.
    In case the idiot Govt doesn't realise LL don't have access to a magic money tree!!

    Many LL will have been frightened to death over these Govt actions.
    Many LL will be getting out of the PRS because of all this.




  • PossessionFriendUK PossessionFriend

    Its a short, nonsense article purely for publicity.

    Paul Barrett

    One thing I will never use is this useless company for any LL tax advice!!!
    GoSimple perfectly describes how simple they are and stupid.

    I feel the idiot article is designed to wind LL up.
    Must admit this tw#t has me spitting feathers.

     
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