Reply to: Is buy to let still worth it?

[vetran]

I vaguely remember about 8 years (or more) ago there was a cross gov project to allow data sharing between them. An example would be eligibility for free school meals. Data could be combined from HMRC, DWP and Dept for Education and so on. I do remember talking to colleagues about it being a super quick win against landlords. A simple check of anyone with more than one entry with Land Registry that isn't submitting Self Assessments would have been a good start for catching landlords not paying any tax. Granted doesn't help with paying the right tax but shoudn't be too difficult to devise something a little more complex to check amount of tax being paid against some presets. Should be able to target anyone making losses year on year or are paying an inordinately low amount vs averages for some low hanging fruit.

No idea if they do this but it would be utter madness if they haven't.

I suspect its utter madness still.

Sadly I suspect nothing has changed.

[northernladuk]

One would also expect few landlords are paying "the right amount of tax"..

I vaguely remember about 8 years (or more) ago there was a cross gov project to allow data sharing between them. An example would be eligibility for free school meals. Data could be combined from HMRC, DWP and Dept for Education and so on. I do remember talking to colleagues about it being a super quick win against landlords. A simple check of anyone with more than one entry with Land Registry that isn't submitting Self Assessments would have been a good start for catching landlords not paying any tax. Granted doesn't help with paying the right tax but shoudn't be too difficult to devise something a little more complex to check amount of tax being paid against some presets. Should be able to target anyone making losses year on year or are paying an inordinately low amount vs averages for some low hanging fruit.

No idea if they do this but it would be utter madness if they haven't.

[ladymuck]

It relies on the tenants reporting him.

He will just have his wife/mother/random other relative fronting his operations from now on.

Exactly what I was thinking

[SueEllen]

I'd love to know how that's going to get enforced

It relies on the tenants reporting him.

He will just have his wife/mother/random other relative fronting his operations from now on.

[BlueSharp]

No hassle? Mothercare? Carillion? Northern Rock?

A diversified portfolio, such as a global tracker?

[ladymuck]

This is how you make money out of buy to let - https://www.bbc.co.uk/news/uk-england-london-66520812


Just don't get caught.

I'd love to know how that's going to get enforced

[wattaj]

No hassle? Mothercare? Carillion? Northern Rock?

Never invest in single company stocks... well, I say "never", but this is more of a 'do as I say; not as I do' sort of situation.

[b0redom]

No hassle? Mothercare? Carillion? Northern Rock?

[reddog]

If you are a cash buyer why not just stick the money in the stock market, as per my knowledge the yield would be in the same ball park, but a lot less hassle.

BTL was only good because:

1) a lot of BTLers cut corners using residential mortgages etc. and exploiting the fact that the law was not in tenants favour

2) interest rates were heading down, so a crucial part of the gains would involve using borrowed money

3) asset prices went up due to low interest rates

4) a lot of Btlers did not pay the right taxes and bizarrely this was overlooked by the government


Overall I would say the last 20 years were a unique situation. If it wasn't for the fact you were allowed to get levered up and not have a lot of regulation it would not have been good. If it was just investing your money in any ftse100 business Vs BTL without leverage. FTSE 100 would win (especially as there is no hassle)

[JustKeepSwimming]

Companies House records are mess. There are a few people who have highlighted to them that the directors of some companies still aren't legit.

Also you are making the mistake in thinking managers across government departments want to work together for the good of the populace....

Back in my day HMRC were notorious for not playing nice with anyone else. No matter what the idea was, if they didn't invent it they aren't doing it.

[SueEllen]

Though the fact Companies House & the treasury were shafted so hard by conmen over Covid loans they should be pregnant suggests they would be incapable.

Companies House records are mess. There are a few people who have highlighted to them that the directors of some companies still aren't legit.

Also you are making the mistake in thinking managers across government departments want to work together for the good of the populace....

[vetran]

One would also expect few landlords are paying "the right amount of tax".

I would make the deposit scheme mandatory for any landlord then join that to HMRC see how many are paying any income tax.

Same for tenants and discover how few have a valid visa if needed.

Though the fact Companies House & the treasury were shafted so hard by conmen over Covid loans they should be pregnant suggests they would be incapable.

[JustKeepSwimming]

Seems luckily he didn't kill or maim someone.




You mean the "Entrepreneur"?

https://find-and-update.company-info...filing-history

That's the one. opened late 2019. nothing but a 48k appearance in 2020 that disappears 2021 and dissolved 2021. The dates dont match up.

Looks like he took out 48k BBL straight to himself. Failed to file, notice of strike off, strike off discontinued because of no accounts (issue because of the BBL?), he then makes retrospective accounts, repaying? or writing off the BBL? application to strike off approved.

[SueEllen]

So absolutely no punishment?

Seems luckily he didn't kill or maim someone.

Company house his name, whilst I can't read accounts to save my life it does look like he did a bounce back loan grfit too, 48k.

You mean the "Entrepreneur"?

[JustKeepSwimming]

This is how you make money out of buy to let - https://www.bbc.co.uk/news/uk-england-london-66520812


Just don't get caught.

So absolutely no punishment?

Company house his name, whilst I can't read accounts to save my life it does look like he did a bounce back loan grfit too, 48k.