Renting Property hmrc
I was asked yesterday and I dont know the honest answer ,
If some body is renting there Main Home out and living in Australia there Mortgage is £200 pcm and the rent is £800 pcm the letting firm is 10% plus vat so around £100 they are overpaying there mortgage buy £500 pcm.
Would they need to declare they are making the extra £500 or just pay it off the mortgage and say nothing , it is there only home in the uk it isnt like they have multiple properties.
I would assume the £500 is considered profit and un taxed income ? so it should be declared.
Could they be found out and how , I guess the land registry know who owns it and the electoral role who lives there ,but who would know what the mortgage payments were ?
Last edited by scooba0010; 09-24-2012 at 12:34 AM.