I'm planning to rent out a house through a letting agent. The letting agent wants to deduct tax from me before paying me the rent.

I'm self employed and am considering running the house rental through my own business, investing the money back into the house through repairs, glazing, redecoration, etc.

Would I be better off letting the letting agent deduct the tax or routing all the finances directly to me tax inclusive?

How can I persuade the letting agent to not tax me? The only form I've spotted on the IR website is one for overseas landlords, which I'm not.

Why not try letting it privately?

Have done that before, don't have the time to manage the process really, plus I don't live in the same town as the house.

Give the revenue or your accountant a ring. If the letting agent deducts the tax it would probably be at the full rate, not taking into account your expenses on the property?

Use a different agent. There was no mention of deducting tax first with the agent I used - they were absolutely rubbish by the way and paid the tenants their bond back before they had even moved out ( and peppered the laminate flooring with dart holes!)

There is no way I would use an agent again. I let my properties out myself very successfully and the tenants don't have to pay a fee. I can see it is more of a problem if you do not live in the same town. Are you very far away? It might still be worth doing it yourself if you only do 12 month lets - much more profitable than paying an agent

Vision,
what properties have you got available?

Originally posted by daz25
Vision,
what properties have you got available?

Nothing at the moment. Sorry.

2 bed flat in West One available August. My other properties are on a month by month basis at present.

I don't understand how the agent can deduct tax from you without knowing your exact circumstances ie the financing/wear and tear/allowable expenditure which is more of an issue for you / your accountant and I wouldn't let them interfere.

I've got quite a few houses and stopped using agents when I found the outragous fees they kept charging the tenants up front when I was also paying them5-7% but doing all the work to keep the houses really good and taking the financing risks(sorry rant).
If you already are used to running a business you may as well run the property things through it at well. good luck with it

Is there any evidence that the agent will actually pay the tax to the IR?

yeah, and if the agent went under you'd lose it too as this has happened with deposits in the past.

Or if the agent packs up and leaves on purpose :mad:

(Have I been watching too much Watchdog?)

Right! The idea is sold. I'll not bother with the agent. So, there's an advert in Accommodation Available - house to rent in Rotherham!

:rolleyes: When you said it wasn't in Sheffield I thought it was at least 'Nottingham' far away :rolleyes:

It is far away when you have a full time day job and also run a business, there's little time to get over there.

Any suggestions on the best places to advertise for a tenant - other than on here?

Sorry CR, I know you've got your hands full just now :(

How about taking your own ad out in the property papers? (Star and Telegraph or Rotherham equivalent)

CR, try www.freeexchange.co.uk

it has alot of offered AND wanted ads on there

sent you pm

www.Accomodationforstudents.com is excellent. It also has a 'professional' site as well. If you click on the 'notices' button then you can look at properties wanted or post a message on the 'rooms available' - it is free. If you post with more details on a different part they make a small charge. At the moment they are looking for clients so will prob. do it for £5 a month - that's what they offered me.

I have some properties which I run. If you want, I would be happy to take yours on for 10% of the rent. I have a full team of tradesmen at my disposal. I would deal with everything

what properties have you got?

I don't have anything near Westfield, and the fact that you have pets and smoke is also a problem, all my houses are in Meersbrook

Pets? i have ONE kitten.

The problem with alot of landlords now is that not many are prepared to negotiate

The real problem is not your kitten, but the fact that you are a smoker, the fact you have a child should really encourage you to stop smoking, then maybe you would not have the problems you have had trying to find a place for you and your family.


Just an observation !!!!!!

i hate it when people ASSUME!!!

The fact that i needed a place that accepted smokers & pets was due to we have friends & family that smoke!

Never the less, we've found the perfect house, VERY Large, but not from here!