Rental tax..has anyone any experiance

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
27/10/2010 14:49

of paying this...ie is the 10% tax paid on the FULL rental price or after the agents commission

eg if I rent it for £300, the agent rents it for £420 and pockets the diffrence..what tax is legally due?



Also...can expenditure ie water / electric be deducted ?



many thanks in aniticipation

ianwfs


Joined: 08/01/2008
Posts: 563

Message Posted:
27/10/2010 14:55

It's paid on the full rental price as shown on the rental agreement with the tenant.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
27/10/2010 15:04

Thanks....so i need to find out what the full rental price was? ie from the agent ( should,nt they pay 10% on their share? )

frasermeridies


Joined: 14/05/2010
Posts: 8

Message Posted:
27/10/2010 16:34

Dear Stewart

Maybe you should consider changing your agent? The rental contract is stamped at the Tax Office and as previously said the 10% tax is payable on the gross rental price. The tenants pay the electricity and water.

Your agent will make a charge for managing the property and as the landlord all accounts should be fully disclosed to you.

Fraser Meridies

ianwfs


Joined: 08/01/2008
Posts: 563

Message Posted:
27/10/2010 16:46

£120 commission per month sounds a lot. It's £1440 pa. My son rents, and the agent takes one month as a finder's fee. If I didn't live here to keep an eye on things, they would also charge a management fee of about £500. So in month one, my son doesn't see any money because of agent's fees, but he still has to pay tax on the rent.

In other words, tax is paid on the GROSS amount, not the NET.

I also agree with frasermeridies. Whenever I collect money from the agent, I get a full statement of account.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
27/10/2010 16:51

sorry, perhaps i need to make it clearer...I am refering to Holiday rentals, not long term rentals



The rental company have told me that "the amount they charge the customer is none of my business"



( i get what i ask for per week..they put whatever on top of that ie £20 per day )

cyprusman3



Joined: 09/06/2009
Posts: 297

Message Posted:
27/10/2010 17:18

Royal estate nagent charges 10 quid a month for collecting rents etc.. how much are your ones charging you?

artistabroad


Joined: 06/07/2009
Posts: 104

Message Posted:
27/10/2010 19:02

Hi, we used to rent our bungalow for holiday lets, paid the agent 15% commission, and she paid 10% on our behalf to the tax office, leaving us with 75% of the rent charged to the customer - a better deal than you're getting I think!

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
28/10/2010 13:15

Anyone any experiance of paying tax for holiday rentals?

karakum5c



Joined: 18/03/2008
Posts: 1021

Message Posted:
28/10/2010 13:26

Stewart--- i dont think anyone out there is paying the 10% tax due on all rentals be they short term or not. We are all relying on the government being unable to prove that we are not allowing family and friends to stay at our properties for nothing, ie--personnal use.



If you are using a local agent/web site in the Trnc to find tenants for your property and are not paying tax you will get caught !

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
28/10/2010 13:57

Dear K....all i am trying to do..is to pay my tax



It seems to me ...if you rent long term you pay tax on your Net profit, if you let for Holiday rentals you pay tax on Gross profit?...alot of diff

ianwfs


Joined: 08/01/2008
Posts: 563

Message Posted:
28/10/2010 14:02

"It seems to me ...if you rent long term you pay tax on your Net profit"

Not true. If you rent, you pay tax on your GROSS rent, whether it's short or long term. The government makes no allowance for anything you might have to pay to the agent for their services, or any other expences you might have relating to the property.

Stewart


Joined: 19/07/2008
Posts: 1107

Message Posted:
28/10/2010 15:48

Dear ianwfs.....i was referring to, Electric, water etc that the tenant pays, whilst Holiday rentals, you pay tax on all this, plus cleaning, welcome pack, laundry service, £140 pw agent commission etc, which is included in the full holiday rental price

ianwfs


Joined: 08/01/2008
Posts: 563

Message Posted:
28/10/2010 15:51

Sorry. I misunderstood you.

the butler


Joined: 22/06/2007
Posts: 1958

Message Posted:
28/10/2010 16:41

Msg10,



I don't think you should be making general statements, I for one and I know plenty of others who pay their full 10% tax on all rentals. The tax people have been down on our site at least 3 times this year asking questions about who is renting and who isn't. It is not worth the risk of being caught and possibly marched on to a plane for evasion of taxes.



The butlers wife