Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Appalled Landlord" at "08/10/2015 - 21:13":

Appalled, do you accept that, in July 2015 you explicitly stated on numerous occasions that, more interest you pay more tax you will pay under new legislation, until Mark Alexander corrected you?

I will then answer your void period.

I think you might be attaching more importance to those 'characters' than is really attributable.

With this poll as an example - can you really imagine Gauke looking at the votes on it and being in any way influenced? No, of course not.

Reply to the comment left by "Saeef Khan" at "08/10/2015 - 21:50":

I did not state that on numerous occasions. On one occasion in July I wrote:
The more interest you pay the more tax you will have to pay. If you are in the 40% band, and your interest is £10,000, you will suffer extra tax of £2,000 compared to today. If your interest is £100,000, you will suffer extra tax of £20,000 compared to today.
There is no error in that.

On another thread in July I wrote that when interest rates rise, the tax will rise. This was in the early days of the campaign when we were all learning the ramifications. We did not have the luxury of Alex Caravello’s spreadsheet at that time. Mark Alexander corrected me, and I never repeated the error.

I await your justification concerning my alleged statement about void periods, or a retraction.

Please no arguments 🙂

Hi

I had a conversation with an letting agent the other night and I can say it got heated to a point.

It was about voids I just had a property empty for 3 months in 2021 If the same happens then. I will end up paying the mortgage with no rent coming in yet at the end of the tax year the payment with my others will be put into my income and subject to tax even though there was no money earned.

I think that is what Appalled Landlord is saying.

The more interest you pay the more your income column will show so you will pay more tax.

Maybe if you only have a few properties this wont matter but it will if you have more.

Reply to the comment left by "Neil Robb" at "08/10/2015 - 22:26":

Hi Neil

No, I was not saying anything about voids.

Reply to the comment left by "Saeef Khan" at "08/10/2015 - 13:40":

Sae said at page 504... if all who signed the petition paid £50 each"

I believe we should organise a fighting found and a board to administer it.

I think the RLA and the NLA don't have teeth and believe that retaining their long term ability to rub sholders with parliamentarians is more important than winning this battle. They are very very nice people but maybe that is why the only have 30,000-40,000 members and are not being insulted in advance or listened to by government now.

As Gorge Bush said to the UN "Act or be relevant" and I have said the same to the NLA. I do believe the RLA and NLA will not want the fight and maybe they should not have it - but we should!

If we can raise enough money for a legal campaign and a advertising campaign we can get traction. IF everybody understand the Tenant Tax and stills wants to do nothing then at least we tried.

Where do I sigh up to "Kill the Tenant Tax"?

Reply to the comment left by "Jim S" at "08/10/2015 - 16:47":

Thank you Jim for your kind words.

I keep trying to fathom how the hell anybody with a brain came up with this method of calculating taxable income in the first place.

I am not an accountant, I am a landlord, but people tell me I can explain stuff fairly well, so I'm glad I can help by making a small contribution.

I notice some other posters have criticised my calculation concerning being taxed on 80% of the finance charge and apparently I might be struck off as a member - hmm, seems a bit harsh, but hey there you go.

Well here is my submission for my defence.
My simpleton brain worked that out by a simple method of subtraction.

If 100% of a business expense suddenly turns into 100% of a Taxable Income,
(Matter turns into Anti-Matter or Vice-Versa)

It's still 100% of something, no matter what you call it.
If you then subtract 20% relief from 100% you are left with 80%.

If you have no allowances left and you become a higher rate tax payer, 40% tax of the remaining 80% is 32% isn't it?

I know there is banding of tax etc, but I was trying to keep it as simple as possible for the brain cell challenged folks such as myself who are fighting for survival.

I can guarantee that any MP that isn't an accountant, will not give a stuff about the exact figures because they don't care about us - they care about people's opinions of them and their retention as an MP.

They will just need a pc dongle with an excel sheet on it, that works, then just wind them up and put them back on a train to Parliament.

Can somebody clarify for me however, whether the downloaded spreadsheet is to be used or isn't it?

As I downloaded it again a few days ago and it appears to be the same as the original one I saw weeks ago.

This forum moves so fast, I can't keep up with events. it's great though isn't it?

Anyway Jim, once again thanks for the kind words.

As for my critics, what time am I to be flogged and have my fingernails pulled out? I will set my alarm clock.

I've had the 'Snip' already so you can have my 'Spuds' if you like.

Reply to the comment left by "Appalled Landlord" at "08/10/2015 - 13:17":

Hello Appalled! Thanks for correcting me, but I haven't a clue what you mean as I am not an accountant, but I am confused.

Do I use the spreadsheet available or not?

My brain copes with simple concepts like, black, grey and white & whisper, Shout and Strangle.

So as I have no intention of misleading anybody, in easy Romanian pig farmer terms, how do you explain 'Clause 24' to a tenant on benefits that you want to sign the online petition and write to their local MP?

It's a genuine question, I am not criticising you for trying to be helpful.

Because even I'm struggling to think of a good analogy that most of my tenants and friends that are Landlords can understand.

Reply to the comment left by "Gary Dully" at "09/10/2015 - 02:19":

"As for my critics, what time am I to be flogged and have my fingernails pulled out?"

Sorry Gary such treatments are reserved for errant chancellors.