2007-01-11 09:41:09 · 10 answers · asked by Mads 1 in Business & Finance ➔ Renting & Real Estate
United Kingdom
2007-01-11 09:42:41 · update #1
If you don't you could have a tax bill back dated to the first time you first starting renting which could result in you having to sell the property/ies to pay the bill
Best to contact your local inland revenue office (a search on google or ask jeeves will find you the website).
Good luck
2007-01-11 09:51:09 · answer #1 · answered by Bristol_Gal 4 · 0⤊ 0⤋
I take it you are in UK but if not I suspect the answer is the same!
Yes of course if you make a profit the Inland Revenue arm of HMrevenue and Customs will want to know. The profit is added to your other income and tax calculated on the lot.
If you do not declare it you risk having to pay all the underpaid tax, a fine and possibly prison! This will be when HMR&C catch up with you!
It is quite easy for them to find out from public documents and their records!
2007-01-12 04:37:26 · answer #2 · answered by Davy B 6 · 0⤊ 0⤋
You certainly do. The houses are registered with the local council so all details of ownership can be checked out by the tax people. Your tax bill on rent should not be too high if you spend money on maintenance and offset you tax .
If you do not declare then when not if, when they catch up with you they can back date your liability and if they wish, prosecute and a custodial sentence could be given with the addition of a fine.
Play straight and you will find it easy though annoying.
2007-01-12 03:52:52 · answer #3 · answered by ANF 7 · 0⤊ 0⤋
One of my friends owned 2 houses, rented them out and didn't declare it. He spent the cash, this went on for about 9yrs before he was eventually caught. The taxman has made him repay all of the money plus interest or he faced jail for tax evasion. If you don't get caught, its cool but you will always be looking over your shoulder. Ask yourself if its worth it? Good luck in whatever you choose.
2007-01-11 19:11:47 · answer #4 · answered by china doll 5 · 0⤊ 0⤋
They will get you eventually - 'nothings more sure than Death & Taxes'... and Death never stopped Taxes (they Tax you after you die !)
Better declare now & claim every possible allowance against rent .. (rather than later and find you have no reciepts and tax man don't believe you spend money on repairs, decoration etc etc)
2007-01-12 03:31:18 · answer #5 · answered by Steve B 7 · 0⤊ 0⤋
If you are renting them, it is income, you must declare it. that is the legal way of doing things. you have to declare the properties and the income!
2007-01-11 17:50:25 · answer #6 · answered by Pat D 2 · 1⤊ 0⤋
Yes you have to declare this as earnings and if you don't the very own queens tax collector will be after you
2007-01-11 17:49:24 · answer #7 · answered by Anonymous · 1⤊ 0⤋
If you dont declare the income from rental the tax man will hammer you financially when he catches you
2007-01-11 17:50:40 · answer #8 · answered by la.bruja0805 4 · 1⤊ 0⤋
You will have to declare the rental as it's classed as income by the Taxman. If you don't, then when you finally get caught, you will have one hell of a bill!
2007-01-11 17:51:44 · answer #9 · answered by Greybeard 7 · 1⤊ 0⤋
if you get the rent in cash and not put it into a bank account how well the tax man know ? get the idea
2007-01-11 17:49:21 · answer #10 · answered by johnny boy rebel 3 · 0⤊ 2⤋