To think we cannot accept rent via DC's bank account!?

[coucoululu]

DH and I have a flat that we would like to rent out. We understand rent will be a second income and so will get taxed as such.

DH is saying if we were to open a bank account for our 10 month old, it would be his income and will only get taxed after £12,500.

I highly doubt this is ok. I have had a Google and am sure it's not allowed.

The money ultimately would be for DC and maintenance of the property but even so.

Advice greatly appreciated. X

The property is in yours/your husband’s name therefore it’s your income. You cannot merely have the money paid into your sons account, you would have to have the property put into his name…which I am unsure if you can do at 10 months old.

Tax evasion.

I bet you and your dh expect good quality education, NHS provision, public services etc. How do you think they are funded?

This just pay the tax like others do. Why do you think you should be allowed to not pay it?????

Was this a actually a serious suggestion?

It won’t work. The people who own the property are liable for the tax. If you and your dh are named, you’re both liable to pay 50% of any tax owed. Worth noting in case this pushes one of you into a higher tax bracket

Thank you everyone.

DH has also gotten really offended and called Mumsnet stupid and asked if any of you are an Oxford qualified lawyer and he isn't stupid, he had a good idea.

Just totally fed up now.

It's not a good idea. I'd be embarrassed if he were my husband

Is your husband stupid enough to think that HMRC are as stupid as him?

Section 629 of the Income Tax (Trading and Other Income) Act 2005, for starters.

Oh gosh, “Oxford qualified” isn’t making him sound any less stupid 😭

Poor you OP, not only being married to a pompous, immature man, but also one with an over-inflated sense of his own intelligence. How tiresome. Hugs.

So fed up with people trying to fiddle the system in some way, especially when landlords too.

Tell.him to Google

• can a minor own property
• can someone get rent on a property they don't own or let

Why a lawyer? He is talking about tax, there is a whole other qualified profession that deals with that…

Your husband sounds like a walking red flag.

Oxford qualified 😆

You qualify by doing an LPC at a law firm doofus (him not you)

Hang in there 😅

I'm mortified for this Oxford qualified Lawyer.

First of all for being such a moron and second of all for not being able to afford taxes considering he is so 'successful'

That won't work. Google is stupid, too!

Children can't own property

Income of parents over £100 is taxed on parents

Why Oxford qualified?

Why would they be the best people to consult? If you had a question regarding your tax, would he really consult and Oxford qualified lawyer?

He is that stupid?

Your DH is a tax evading tit - his lack of smarts is embarrassing (this is a quote from my DH who is a tax lawyer)

Is he always this touchy when people poke holes in his harebrained ideas? Imagine such a fragile ego. I'd be cringing for him.

Oxford qualified lawyer? No
Tax Specialist? Yes.

I always say to people who come up with these stupid ideas, refuse to listen and think they are cleverer than everyone else - you know what, do it.

If he is nor going to listen to sensible advice, then he's going to do it anyway.

But, he he better not cry and whinge when HMRC open up enquiries into his tax.
He'll end up spending more money and time dealing with HMRC, than had he just paid the correct tax in the first place.

If he does go ahead, I suggest he put some savings together when he inevitably has to pay the correct tax, interest and penalties.

The beneficial interest can be assigned to him....you need to go to a solicitor and have them draft a deed of transfer.....

once the above has been actioned
it can, as far as I am aware (although it’s been a while since I did this) then it can be his rent.....

worth checking in with the lawyer as it will save a lot of tax

It’s fraud.

10 month olds cannot open bank accounts in their name. It would be linked to yours. They also cannot receive an income.

Tell your OH he is a dickhead.

It's legally impossible for a minor to own property so it wpuld still be treated as yours.

Them income is the money earned rather than money taken. You will be able to vlaim for expenses and wear and tear.

Get thee to an accountants (also tax deductable) and play it straight. It's the best advice.

@Fanlover1122 - OP and her husband would still have to pay the tax as they gave their minor child the benefit of the income producing asset. HMRC aren’t daft.