Axe The Tenant Tax Awareness Week – Get Involved

I think one way to make a difference is to write to politicians and journalists and anyone else you can think of. There are all kinds of ways of getting the message across. If we all said we would do one thing each day this week - even if it's an email, then that could make a difference.

To get the ball rolling, I wrote the following on the Shelter FB page yesterday:

'On the news this morning, Kate Webb of Shelter, was talking about the increase in temporary accommodation in London. Apparently it's because landlords are increasing rents. Well, I and many others have been telling Shelter since July 2015 that rents will rise because of Section 24. Personally, in South Wales I have increased rents on tenants in situ in two increments so far by about 5% on average each time. I never did this before. I am doing it because my effective tax rate on my profit/salary from my business (I have no other income) of between £40,000-£50,000 each year (it varies depending on voids, arrears, damages, cannabis farms etc) is now increasing each year so that by 2021 I will pay 44% of this to the Exchequer rather than the 24% I pay now. Obviously I will have to 'absorb' some of this; but I will also need to maximise my return by increasing rents or I could go bust and have to evict all my tenants. I house many tenants in houses for between £300 and £400 a month - similar to Housing Association rents; in fact, it's often cheaper because I pay tax on any profit, so this goes to the Government. I would like to know what the highly-paid staff at Shelter would do if their income tax rose from 24% to 44%. Also, because the new tax is not related to the profit of the business but rather tied to interest rates (it is, bizarrely, a tax on finance costs AS THOUGH THEY WERE PROFIT AND STILL IN OUR BANK ACCOUNTS WHEN IN FACT THEY HAVE BEEN PAID TO THE LENDER), some landlords are facing increases in their tax rates from 20-30% to 80-90% by 2021. I ask again, would Shelter staff be happy to pay this? Patrick Collinson at the Guardian accused landlords last week of having a 'victim mentality.' Well, if he were asked to pay 80% of his salary in tax, I think he might feel he was being victimised. Shelter's position on this is not only crazy; it is immoral. Any business which faces costs like this will obviously increase the charges for their services as a first or last resort. It is simple economics. Professor David Miles, formerly of the MPC, is just one economist who has pointed this out and urged that Section 24 be reversed. I suggest Shelter listen to economists or maybe even employ one, given the vast sums at its disposal, and actually listen to some common sense on this and make a public statement that it is opposed to this lunatic tax.'

I think it would be good if others go on that page and put the pressure on for them to reverse their stance. There may be a chance of this now that the vehemently anti-landlord Chief Executive, Campbell Robb has gone. Trying to sway Crisis would also be useful. But having a go at these is only one idea... Just thought I'd share it as it may get others to thinking about what they want to do for the campaign.