Summer Budget 2015 – Landlords Reactions

Right. I'm just listening to Jeremy Corbyn's speech. Jeremy loves the SELF EMPLOYED. The SELF EMPLOYED are really good - they're self-sufficient, they work hard, they look after their families without relying on the state etc. Sound familiar?
Since the self-employed are so loved then, we have to get that word in every other sentence to describe us. Because that's what we bloody are as well.

The problem with the corbynites is that they are socialists verging on communists. They believe everyone should be the same regardless of effort, skill or hard work. They hate aspiration and anyone who tries to have more or be more than their neighbour. They will never be convinced of our plight because they simply will not listen. Its their religion and they are blinded by it.

Reply to the comment left by "KATHY MILLER" at "29/09/2015 - 18:33":

Hi Kathy

I don’t recall asking for this, but the document is very interesting anyway.

Reply to the comment left by "Ed Duncan" at "29/09/2015 - 19:56":

Ed.... start raising rents by 10% now... I agree!

And whats more, if I have not yet paid the tax, then I would return the extra monies to the tenant if the Tenant Tax is abolished.

My clear position is - " Don't blame mr tenant, I urged you to get engaged; blame your government. I am not increasing rents
per-se, I am collecting Tenant Tax for the treasury!"

The monies over the fair market rent, is not mine to keep at any time. It is either the treasury's money via Tenant Tax OR it is the tenant's and I don't care who has it - they can fight that out between themselves "cos there aint no one lisnin to me"

Reply to the comment left by "Gary Nock" at "08/07/2015 - 15:27":

The Government doesn't want to tax profit. It wants to tax turnover but will give you a tax credit of 20% against the tax on the turnover.

It has been suggested that we are not runing businesses ?

Ok let us now start look at how we should adapt , to arrive at "selling price" we need to take cost of product/ service, factor in overheads, running costs, admin, compliance, insurance, training, bad debt plus any other associated costs , then we need to add a reasonable profit margin to arrive at the sales figure.

With most products /services the government see fit to force us to add a tax to this value (VAT) however resi prop rents are exempt from this VAT burden. They will soon not, however be exempt from TAT - tenant added tax. i am perfectly happy to continue explaining this very simple concept to tenants.

Thats a tad misleading you say ?

NOPE

35% of every pound of your rent will be going directly to HMRC. AND is considerably LESS misleading than describing a legitimate business expense as a "tax perk"

Is there any mileage in getting the tenant to pay the mortgagee direct so that the money for the mortgage repayment doesn't actually go through the landlord?

Granted that there are issues here in ensuring that the payment has been made with the landlords credit worthiness at risk but with an account in credit, it could potentially work.

Reply to the comment left by "Dislexic Landlord" at "29/09/2015 - 19:32":

Yes, the spreadsheet that you linked to is deeply flawed, yet they ask for a donation of £5 via Paypal! I have found five errors in addition to the one Trendo pointed out.

Why did you put this forward as your first posting on Property118, when we can download a spreadsheet that calculates the tax payable correctly from the top of any page of this thread?.

Reply to the comment left by "Trendo " at "30/09/2015 - 00:05":

2 Bed flat £438.75 pcm available (plus TAT)

– Tenant Added Tax – of £236.25 = £675 pcm payable

This is the reality of what i am marketing now. Others will have far worse figures than mine ( i have a few HMO’s),

35% of all my rental income will go to HMRC = Rental Tax (RT) % = (annual new tax payable / annual tot rent collected) x 100 …for the mathematically challenged !

TAT = (RT)% x Rental Income ...35% x £675= £236.25

In actual fact the rent will be £438.75 plus 54% TAT
(actually 53.84615% so i rounded it up!)
again for mathemetically challenged:
TAT % = TAT / (Rent collected-TAT)

54% = (236.25 / 438.75) x 100

If 20% VAT was added to rent there would be complete uproar, but TAT charged at 54%% (in my case) is great.... apparently ?!!!

What TAT level is everyone else going to be charging on behalf of our feckless government ?

Reply to the comment left by "Trendo " at "30/09/2015 - 01:24":

...Add in: Landlord licensing fees, HMO fees, registration fees, Compulsory/Continuing Professional development costs, epcs, gas safes, deposit protection costs, electricalinspections cost, smoke alarm tests, emegency light test, plus what ever else they can dream up, along with admin time/costs for all the above .

Mr Tommy Tenant i assume you would like me, as Landlord, to have funds in place to repair the boiler, the washing machine, the oven etc when required. I'm guessing that you would like me to change the carpet every 3 to 5 years, also mattresses every few years, when the fence blows down in the winter of course we will need to have funds in place to immediately fix that as well. If the wind takes a few tiles off the roof of course we need to be in a position to fix it quickly as well.

As you can see Tommy T the government is screwing you over in a big way, as a LL, contrary to popular belief i dont have pots of money to service all these Government costs that are being introduced and stolen directly from your rent money. In order for me to continue providing this service the rent cost will have to increase to allow this. The returns on the "investment" or business that we have here are about to have the terms fundamentally changed to tenants detriment in no uncertain terms.

I'm guessing if you had the deposit already for a house then you would have bought one or will buy one very soon.
If you are saving up the dep, then the government is about to steal your ability to save, as they are going to take the money from your rent.
If you cant afford the rent rise then you will have to find a charitable LL who has got pots of cash to pay these extra new costs and subsidise his investment/business (your home).
If as a result of these new tax proposals you lose your job as a decorator /cleaner/electrician/plumber/buider/carpenter/letting agent csa working on BTL props or for whatever reason, then unfortunately most Landlords will no longer be able to offer you accom - as they literally wont be able to subsidise the HB offered as enough rent. There will be many people looking for HB level rents but not many LL that are in anyway able to provide it. To compound this, some Landlords will sell up reducing the available rental market, and to further compound this, the rental demand is getting bigger by the day. You should also not overlook that the government needs tens of thousands of extra properties to house an "undisclosed" number of asylum seekers. ...at a time when we have a serious housing shortage and no where near enough homes being built each year. Is it serious ? Yes, very i would say.

If i were you, Tommy Tenant, i would start shouting very loudly at your MP about what is proposed to happen to your hard erned rent money and try along with LLs to stop this TAT outrage and attack on your bank balance and quickly.