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Should I be paying tax on the rental income?

7 replies

MyMorningHasBroken · 06/10/2017 21:03

Ok so husband had bought outright property before we married. He started renting it out and we bought another place to live with the family.
I stayed at home with 3 kids mostly during out marriage and the rent was put into my account. My name is not on the deeds or anything.
We separated 2 years ago.The rent continued to be put into my account. Now its just dawned on me. I think he probably still declares it himself and I'm going to ask asap but now I'm worried. We are not divorced but have lived seperatly for 2 years.

OP posts:
dontcallmethatyoucunt · 07/10/2017 10:45

That depends on a number of things. Sounds to me like the person to speak to is your husband. Someone owes tax, could be him, could be you (but that depends on a number of things too).

homebythesea · 07/10/2017 10:53

Why were you being paid the rental. Was it into an account in your sole name? Was it intended to avoid him being liable for tax /falling into a higher tax bracket? You need advice- someone needs to be paying tax on this income, and you can’t assume he is!

user1484311384 · 07/10/2017 13:53

I echo these comments. Yes, tax is liable on any rental income. Suggest you ask him, and if he says he is paying tax, get the written evidence. The time is coming soon when renting will be much more tightly legislated, for example in Wales now all landlords need to be registered. Therefore it is in your own interests to get this resolved as soon as possible. Even when bona fides, HMRC can be very difficult. One year when we had lots of genuine expenses to set against tax on rental income, problems with gas fire flu, washing machine needing replacing, etc. my partner ended up having a tax investigation. Anyone who says renting out as a landlord is just easy money, hasn't done it!!!

MyMorningHasBroken · 07/10/2017 15:38

Thank You, No, it was paid into my account as part of my 'household contributions' Ie, the bit of money I got to buy shopping ect as I didn't work. the account is in my sole name yes.

OP posts:
MyMorningHasBroken · 07/10/2017 15:59

Ok I've spoken to him and yes he is paying tax on it. Phew!

OP posts:
JoJoSM2 · 10/10/2017 07:09

He owes HMRC tons of tax! The property should have been declared and a tax return filed every year + due tax calculated and paid. The tax was obviously his to pay.

JoJoSM2 · 10/10/2017 07:10

Sorry, just read your last post Blush

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