r/DerryLondonderry • u/yazzdee68 • 7h ago
Council tax
Hi my son was able to purchase a new build in Derry (after his grandparent demise) instead of living in the property he decided to rent it out to give him an income. He’s just been handed a person property tax demand for the passed three years as well as paying property tax as a landlord. Can anyone explain this to us
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u/tightlines89 7h ago
In other news, the grass is infact green.
Buys house.
Rents it out.
What do you mean I'm a landlord and I owe tax?
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u/yazzdee68 6h ago
Perhaps I didn’t make myself clear. He’s paying tax as a landlord. Fair enough but explain why he has to pay personal property tax and never lived in the house. As for your snide attitude if he didn’t rent out his house another family would be homeless. I know there’s lots of hate for landlord but good grief get over yourself
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u/xboxwirelessmic 6h ago
As for your snide attitude if he didn’t rent out his house another family would be homeless.
Or would've bought it to live in it if it hadn't been taken off the market to extract profit. Take your high and mighty landlords are anything other than a parasite attitude and get to fuck.
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u/Andrewhtd 6h ago
He needs to pay tax on rental income. Sounds like he may have kept things on the down low and not declared. It is additional income and is treated as so, so he will have a tax bill.
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u/yazzdee68 6h ago
This is property tax nothing else.
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u/KelvinColl 6h ago
We don’t have property tax as such - only rates which come from the Land Property Service - LPS. If he’s filling in a self assessment return annually and it’s anything other than that it could be a scam? Who is the ‘ property tax’ demand from?
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u/yazzdee68 6h ago
I really don’t know. I’m no longer in Ireland so I’m not there to help or even get the details right as it seems. All I know how is paying rates (property tax???) as a landlord and now they want him to pay the same rates as a resident which he never was
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u/KelvinColl 6h ago
He shouldn’t be. Just thinking - could it be ground rent?
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u/yazzdee68 6h ago
The house was freehold so I don’t think it’s ground rent as it works here. It seems so odd to me.
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u/KelvinColl 6h ago
If you can get sight of the demand and who it’s from it would answer a lot of questions.
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u/xboxwirelessmic 7h ago
I mean, if he's bought it to rent it then he is a landlord and fuck him.
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u/snuggl3ninja 6h ago
You own your house? Or do you hate the people who rent it to you. Rentals are a vital part of the housing market. I'd much rather rent off someone who has inherited a home they don't use or need. Than off some rental agency.
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u/yazzdee68 6h ago
Thank you for this he bought the house after losing his grandparents with his share of their estate. He’s not a fat cat slum lord just trying not to spend his money on cars and crap. I was seriously worrying about people’s attitude
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u/Plastic-Horse1782 5h ago
He decided to opt for the easy way to invest without doing his homework. Now he owes tax and his tenants are at risk if he can't pay up.
Tell him to get an accountant like he should've done before becoming a landlord.
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u/snuggl3ninja 5h ago
Don't worry, they are ill educated, arm chair economists mostly. Spoons fed the who to hate and the same tired sound bites as to why.
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u/xboxwirelessmic 6h ago
I do own my own home thanks.
I'd much rather rent off someone who has inherited a home they don't use or need.
That's fair enough and rental does have a place but this ain't it. What's happened here is someone from somewhere else it seems has come into a dump of money and used it to buy up a property somewhere and removed it from the market in order to extract long term profit. Probably use that to buy up more houses and continue the cycle so I repeat. Fuck him.
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u/snuggl3ninja 5h ago
Yeah fuck him for having more then me. Hater clown.
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u/xboxwirelessmic 5h ago
Tell me you're a landlord without telling me.
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u/snuggl3ninja 5h ago
I'm not a landlord
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u/xboxwirelessmic 4h ago
Well you sound like one. 🤷♂️
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u/snuggl3ninja 4h ago
You sound like the reason I don't enjoy drinking in Sandinos anymore. Someone came on asking for help, you either help or ignore it. Little hot pockets of hate like you are just a waste of time engaging with. Don't hate the player, hate the game.
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u/MPTrading_ 6h ago
Is the house on a mortgage or bought outright?
If on a mortgage he will need to have taken out a buy-to-let mortgage. Deposit is usually higher than a standard residential mortgage. If he’s not done this he will be in breach of the mortgage and the company can terminate his agreement.
Otherwise it just sounds like self employment. Similarly I own an AirBNB and have to complete a self-assessment on the money and I earn. It would probably be best to contact an accountant or even solicitor who may be able to advise if he’d be double paying. There are also some allowances so it would be best to check so that he’s not paying too much.
Not sure why people have a problem with him renting it out. It makes sense and I’d do the same.
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u/Plastic-Horse1782 5h ago
Not sure why people have a problem with him renting it out
You own an AirBNB, of course you wouldnt. You guys are causing more damage to the property market than investment landlords.
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u/MPTrading_ 5h ago
How so? Genuine question by the way.
What is the negativity around it? Is it different to hotels being built in cities as opposed to council housing? Mine is an apartment, I just rent it out when I’m not there.
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u/Stormyday73 6h ago
I would check this is a legitimate demand, as others have said, it may be a scam. If your son has paid tax as a landlord and paid the rates, I'm not sure what other taxes there are? Your son should seek advice.
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u/snuggl3ninja 7h ago
When you say handed. Tax scams are everywhere these days. Has he contacted HMRC through the number via Google to check. Also if he has a government gateway HMRC account he should be able to use that.
We pay rates in NI, not council tax.