How’s Rachael from accounts getting on…..

[MNW67]

This seems to have an American slant but I assume the same applies:

AI Overview

Unearned income is money received from sources other than active employment or services rendered, such as investment income (dividends, interest, royalties), rental income, inheritances, gifts, and certain benefits or pensions. In contrast, earned income comes from wages and salaries for direct work. While unearned income is generally not subject to payroll taxes like Social Security or Medicare, it is typically taxable and must be reported on tax returns.

 

[motorbiking]

This seems to have an American slant but I assume the same applies:

AI Overview

Unearned income is money received from sources other than active employment or services rendered, such as investment income (dividends, interest, royalties), rental income, inheritances, gifts, and certain benefits or pensions. In contrast, earned income comes from wages and salaries for direct work. While unearned income is generally not subject to payroll taxes like Social Security or Medicare, it is typically taxable and must be reported on tax returns.

Yeah so it's kinda a stretch to argue a LL who has various shall we call them "Facility Management" obligations', income from Rent is unearned. He has to find a tenant, organise repairs, carry out statutory checks etc.

On my Airbnbs. I actually do 70% of the cleaning and maintenance myself (with ms. motorbiking).. We quite enjoy it.

 

[diy_fun_uk]

Rachel Reeves is rumoured to be looking at charging National Insurance on rental income. Arguing its unearned income.

Reeves ‘plots tax raid on landlords’ to help plug £40bn Budget black hole

Chancellor considers applying national insurance to rental income, according to reports

www.independent.co.uk

I wonder what will happen to rent, if this happens.

Well, they have to find some way to plug the increasing funding gap caused by paying for the boat people and those on benefits who are perfectly fit to work.

Landlords already have to declare rental income and are taxed accordingly. So the NI tax would be another tax over and above?

As has been touched on, if this comes to pass it will indirectly become known as the TT (tenants tax) as landlords will increase rent to cover any additional tax burden. Or sell up, meaning one less private rental on the market.

 

[diy_fun_uk]

At this rate, it wouldn't surprise me if good ol' Rach proposes some other taxes.

PWT: Pavement Wear Tax. UK citizens to be taxed per mile of public pavement walked on. Calculated using GPS and mandatory ankle tags.
AUT: Air Usage Tax. UK citizens to be taxed per cubic litre of air consumed. Calculated using mandatory breathing apparatus.
FT: Fart Tax. UK citizens to be taxed for each fart they emit. Calculated using mandatory BMD (Bumhole Monitoring Device).
ST: Speech Tax. UK citizens to be taxed for each 1000 words spoken. Calculated using mandatory mic and dictation software.
BT: Bonking Tax. UK citizens to be taxed for each 10 bonks they have. Calculated using mandatory HTMD (Hip Thrust Monitoring Device).
LT: Living Tax. UK citizens to be taxed for each year they live from 16 onwards.

We're incompetent at growing the economy, so we need to tax the middle and top earners to within an inch of their existence.

 

[motorbiking]

Well, they have to find some way to plug the increasing funding gap caused by paying for the boat people and those on benefits who are perfectly fit to work.

Landlords already have to declare rental income and are taxed accordingly. So the NI tax would be another tax over and above?

As has been touched on, if this comes to pass it will indirectly become known as the TT (tenants tax) as landlords will increase rent to cover any additional tax burden. Or sell up, meaning one less private rental on the market.

If you are a LL and your primary income and earn over the threshold then you pay Class 4 already. (self employed landlord)
If it's your side line and you already pay Class 1 as an employee then the extra over is due on Class 4 subject to the overall limits.

But all this is based on Profit and most private LL do not make the kind of money to trigger the extra.

So if they are scrapping the thresholds for Class 4 and you already have an income then 2% on say 6-10k seems to be the tax. But then people who would be exempt would appear to be the same people they want to target.

 

[aveatry]

So unearned income if a LL is not running it as a LTD company - or if they are. Could they charge ££ for answering an email from the management company - or even receiving one and reading it. Or every phone call they make or answer. (thinking like solicitors do) And what about when they fix the fence themselves can they account for their time as well as materials. And all of that ££ will count against your dirty filthy "un earned" income.

 

[Mottie]

What about if you are a pensioner and a landlord? Pensioners don’t pay NI, do they?

 

[denso13]

Pensioners don’t pay NI, do they?

Some do, yes.

 

[aveatry]

What about if you are a pensioner and a landlord? Pensioners don’t pay NI, do they?

Good point

 

[Mottie]

Some do, yes.

Okay, if you must split hairs. Only self employed up until the end of the tax year in which they reach pension age but after that, I don't think they pay it anymore after that. They’ve paid enough already.

 

[motorbiking]

One million landlords in the UK are already over the age of 65, and around 96,000 landlords are expected to turn 65 each year across the UK.

Retiring landlords impact UK rental market

Latest survey analysis reveals that landlords are selling up due to retirement age, opening up new investment opportunities for others.

www.commercialtrust.co.uk

So.. Labour are going to charge NI on sector that are mostly exempt from NI.

Good Job .

 

[diy_fun_uk]

Let's face it, they'll NEVER admit it publicly, but to the likes of Labour and the SNP up here in Scotland, the very concept of private landlords goes very much against their grain, unless of course it's one of them doing it.

 

[Mottie]

So.. Labour are going to charge NI on sector that are mostly exempt from NI.

And who mostly don’t vote Labour. Have you noticed that they are taking it out on just about every sector that didn’t vote labour. Spiteful bastards.

 

[aveatry]

Let's face it, they'll NEVER admit it publicly, but to the likes of Labour and the SNP up here in Scotland, the very concept of private landlords goes very much against their grain, unless of course it's one of them doing it.

The aim is to have no private LL and instead big institutions and banks will own them.

 

[MNW67]

The aim is to have on private LL and instead big institutions and banks will own them.

I've read that as well. But I've forgotten why they want it that way.