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

@coucoululu - please take care and when you are ready maybe venture on to the relationship boards. It sounds like you may need support with your husband.

Agree. Take care, OP.

I'm sorry he's being an arse about it. Hopefully he will apologise soon

He sounds like the type who needs A MAN to tell him exactly the same thing all the experienced and well qualified women on here have.

Or perhaps there is a hitherto unknown law I have missed that exempts OXFORD educated people from paying all the tax they owe. If only I had known that when doing my UCAS form.

I am sorry your husband is a chippy twat.

It's quite amusing that he thinks he's found a loophole - obviously everyone who had kids and a rental income would be doing this if so! Oh dear.

OP I worked for HMRC for 34 years and did investigations during the last 10 years

I had several cases who tried this one. They all had to pay all the back tax, interest and penalties. Every case ended up paying substantially more than they would have if they had declared and paid properly and honestly in the first place.

One was such a huge settlement they lost their retirement plans and dreams. The wife was sobbing helplessly while her DH had a face like a bulldog licking piss off a thistle, he had been so adamant that they had done nothing wrong.....

Don't end up like that woman.

between agents fees ,gas electric checks and certificates ,insurance ,maintenance LL registration
if this income take you into higher tax bracket you’d be taxed the full lot at 40%

it’s not worth it hassle and risk you’d be lucky to make a few hundred a month

Given that your husband obviously is unwilling to listen to anything a woman says, tell him that this man on the internet with many GCSEs and a masters degree thinks he's a cunt.

And my advice to you would be that you'd be significantly better off without this man in your life. Maybe a name change and a post on the relationships board might help you get rid of him

Greedy Pair of CFs

Sorry

Your DH is a CF

I re read the opening post and see you are not on board with this

You don't need an accountant- you need a divorce lawyer. Preferably Oxford Qualified.

I believe that HMRC can claim non paid tax going back 25 years into the past

I pay all my taxes & I sleep well

He can decide not to pay tax & wait for the knock on the door in the future, pay a huge tax bill & a fine

There is no escape from taxes & death

This is one of the reasons why people hate landlords on Mumsnet

Yeah. My advice to him (as a woman who is neither tax or Oxford law qualified but is pretty senior in regulatory compliance in another industry) is "pay your taxes you greedy prick".

I know we're joking about it but that wouldn't surprise me in the least!

*“I have a STEM degree.”

Sounds like a fancy way of saying you like flower arranging? 🤣*

oh god. I love this. (Yep, I have a postgraduate stem qualification and am totally going to use this when I next have to deal with an arsey mansplainer)

@VickyEadieofThigh Depressingly I think you are right. I have worked in male dominated areas for most of my career and it is very common.

You already know the answer OP.

@Trilateralcommission

Rental income belongs to the person or people that own the house. It certainly does not become the child’s income because they use the child’s bank account.

Some property lawyers have commented that it is not possible to transfer a house into a child’s name so that appears to be a non starter.

I am not a lawyer, but a chartered accountant of more than thirty years and more generally, parents cannot avoid tax liability by transferring assets / investments into their minor child’s names. If they do, the income arising from those assets is to be treated for tax purposes as if it is their own. Other than for the first £100.

@coucoululu

You might benefit from reading about coercive control and domestic/inancial abuse.

Women's Aid is also available to help you make sense of his fuckwittery.

I would advise you to both to research the responsibilities of being landlords

Paying yearly taxes on income
Vetting tenants
Tenancy agreements, deposit scheme
Yearly gas inspections
5 yearly electrical safety checks
Money for repairs & maintenance
Capital gains tax upon selling
Landlord insurance
Paying council tax & bills when the property is empty
Etc

It is not an easy choice to be a landlord & it is not as simple as "rent out a flat"

Or a knighthood. Who knows ?

Are you/your DH earning above the higher tax threshold? Or would the property income put you at the higher threshold? The best thing to do here is to open a limited company and take income in through that so you would only have to pay corporation tax. You can then take out dividends for maintenance and let the rest accumulate for your son.

Forget that. You’d need to sell it to the limited company I realise.

Pay your taxes. It's what makes society function!

Ha ha ha ha ha 😂

You're on fire this morning @SerendipityJane