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

what people should pay, and what is legally possible eg loop holes are two different things, just because it may be immoral to some, to others its good business methods, no different than the big corporations using legal methods to reduce the tax

Surely it’s fraud?!?&? Because he doesn’t own the home does he?

tax evasion at the very least!

if it was finance or accountancy, then id give more consideration to your points

Surely a 10 month old can’t own a home?

legally?!?

@VitoCorleoneOfMNMafia I do know what a STEM degree is. I don't have one myself "arts" myself" Dh does , but I did laugh at the joke which was flower arranging , ie they have have stems and a joke given that Op's husband thought we were a tribe of women with no sense or qualifications or experience .

this is the issue with this thread what we presume is x may be actually legal just because it seems omg, does not make it omg, same way how big corporate titans can use different methods to reduce tax

its possible :

Guardianship and Trusts:

In cases involving property or financial matters for minors, legal mechanisms like trusts or guardianships may be considered.

A trust could be set up where the property is held in trust for the minor's benefit, managed by a trustee until the minor reaches the age of majority.

Parental Responsibility:

Parents typically have the legal authority and responsibility for their minor children.

Parents may act on behalf of their children in legal matters, but this authority may have limits.

@Trilateralcommission - this is surely why some competent advice from a qualified person is needed for individuals' tax affairs . ( I am leaving corporates to one side for the purposes of this thread. )

My STEM degree was in response to the "dinner ladies with one GCSE" comment from the OP's "D"H, to illustrate that Mumnetters can and do have degrees.

I have made no statements about the legality of any tax plans. I don't need to because others have done this.

I have picked up on the OP's unstated problem, which is that her husband displays arrogant and sociopathic behaviour towards her and others. This is a far bigger problem for OP than a tax bill on rental income ever could be.

Ah so he's a misogynist as well as a tax evader? What a guy.

Fair points, my apologies

It's pretty well known that the stupidest people assume everyone else is stupid.

Sorry OP but your husband has no knowledge of law and is trying to put you down to cover up his own lack of knowledge.

As a lawyer, no you cannot do this.

https://community.hmrc.gov.uk/customerforums/ifp/9a467200-28ca-ec11-bea1-00155d9c7f09

I only have a humble humanities degree. <grovels> but I am a qualified property solicitor with over 20 years experience...

DH has a doctorate in a STEM subject but I wouldn't go to him for finance/legal advice.

"Dinnerladies on the internet" 🙄😂
Right charmer as well as a plonker then lol.

Londonscallingme. Many thanks for your reply. I'm genuinely not trying to avoid tax here, I just wondered if I/or they needed to declare it anywhere. It's a tiny house and I doubt it will increase much in value. It is a second home officially & I paid that level of tax on purchase. I just wondered whether the family member who lives there would be liable as having a taxable benefit if they are not paying any rent, so it sounds as if only capital gains tax is payable which I was expecting. Thanks again for your reply

If you own the flat outright, then put it into a limited company. You’ll have to pay stamp duty, however, the value of the property can be considered as a Director’s loan. That way you are only repaying yourself back, and no tax is due, until the value is reached.

You have a serious DH problem here. His attitude towards women is vile.

He has a serious ego, he WAS wrong, he's now just backtracking to try to save face.

Do you really want to spend the rest of your life with this horrid creature who thinks all women, including you are stupid?

I'm a woman, with ten GCSE's, a degree, a post-grad, and a property portfolio (with correct taxes paid).

Your husband is a complete joke. LTB.

I also have a property portfolio with correct taxes paid. As for your dh, lololol.

I think there are bobbins about!!

that in itself is impressive, but it does not automatically mean that its impossible to achieve,

Nope. HMRC are wise to that one. It's evaison and you'll not only have to pay the tax but a massive fine as well if you try it.

BTW tell your DH I'm a bloke and a retired IFA. Dealing with HMRC was my job.

how could a similar result to what the op is wanting to do, be achieved legally ?

The only reason I said it is because op’s dh thinks we are inferior women. I agree it isn’t impossible to achieve.

Tell him to phone HMRC and ask them directly