Ni on rental income soon.
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The joy of being a landlord
- Thread starter Quartz
- Start date
Dear mods, this is relevant to the thread and not needlessly dragging politics into it, thanks.
If this happens, I can’t possibly imagine who the extra cost will be passed on to.
I’d like to think she’d not be that daft, but who knows..
Landlords could face national insurance on rental income in budget
The Treasury is considering a plan to apply contributions on the ‘unearned income’ as Rachel Reeves addresses a £40bn hole in public financeswww.thetimes.com
The sad thing is that this is not unearned income but hard graft.
Which will only result in rents increasing by a similar amount, causing those already struggling to struggle more.
For some reason people have got it into their minuscule minds that rentals fell out of a Kinder egg or the landlord woke up one morning and a property magically appeared under their pillow, anything other than the landlord actually worked hard to buy the property.
On the other hand, what does make me laugh is a lot of these people are tenants and the govt actions will only increase their rent.
On the other hand, what does make me laugh is a lot of these people are tenants and the govt actions will only increase their rent.
Everyone else pays NI on their income earned from hard graft aka employment so that is no argument against this.
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Your link is paywalled. Here's the Guardian's version:
UK landlords could face tax from rents that may raise £2bn
Treasury reportedly considering budget move expanding national insurance to include rental income
www.theguardian.com
And yes, this will mean a rent increase.
No, they have the strange idea that putting a small amount of money towards a house that you can own for 30 years whilst someone else pays off the balance of the mortgage whilst it also appreciates in value and generally pays you something on top isn't the traditional notion of "hard graft".
I don't consider the money I put into my pension or stocks and shares ISA hard graft either despite working hard for it.
My partner has a house that her parents gave her the deposit for about 18 years ago. Its been a fair bit of work at time but most of the time its no work at all. Its now mortgage free, bringing in about £1500/month after all costs and is worth £600k+ for an initial investment of something like £70k. Its also brought in a small amount of top of costs throughout the mortgage.
I think we have put about £30k into it outside of the mortgage ie. from our own pockets. The rest has been paid for by tenants. The only way that money would have worked any harder for her/us is if we invested it very very very well in the markets.
The maths isn't quite so favourable these days with all the changes to laws and the likely slowdown in house price growth but to landlords have what they have through hard graft is ridiculous in most cases. Much like the boomer generation in general, hard work has been disproportionally rewarded. Massively.
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Shockingly, people resent those that have benefitted from crazy house prices when they are struggling to get by themselves and see no future where they own their own house. They probably like it even less if their landlord is a scumbag and being rewarded for being so.
The fundamental issue with all taxes really. No one wants to make less money so its all just passed onto whoever is least able to pass it on themselves. Only way to fix the housing crisis is to build more houses. Sort out the empty/derelict ones and build a lot more.
Yeah but pensioners don’t pay NI
Soldato
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If this happens, it must also introduce a law limiting annual % rent increases, to prevent landlords passing on all the NI costs to tenants.Dear mods, this is relevant to the thread and not needlessly dragging politics into it, thanks.
If this happens, I can’t possibly imagine who the extra cost will be passed on to.
I’d like to think she’d not be that daft, but who knows..
Landlords could face national insurance on rental income in budget
The Treasury is considering a plan to apply contributions on the ‘unearned income’ as Rachel Reeves addresses a £40bn hole in public finances
Rent increase limits should have been in place a long time ago, because renting is effectively last resort for civil society.
So you charge pensioners a lower rate. That’s a lot less complex administratively than a whole other tax regime, which is what NI is.
Look at this way, at least you get a pension. You can rent it out and move abroad work in another country get a 2nd pension.
They can resent it all they want, but it’s hardly the landlords fault for taking advantage of things at the time.
In fact advantage is probably the wrong word, it’s just how the market was back then.
I would say they should take their anger out on successive govts, but a fat lot of use that’d do.
No argument there.
No, but on thew new system they would pay more tax. Thats not a bad thing.
Soldato
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i dont see why pensioners are not expected to pay exactly the same tax as everyone else.......... indeed i thought they did (every day is a school day i guess).
that way those on a rubbish pension wont pay much, those who are minted will pay just like those who have a really good job.#
that said...... a savvy pensioner who has been putting some savings into investment ISAs, cash isas and premium bonds for decades are likely gonna be sitting pretty no matter how you slice it........... and that is fine imo. hell it is how i am planning for my future for the most part (along with my private pension any payingNI for a state pension).
that way those on a rubbish pension wont pay much, those who are minted will pay just like those who have a really good job.#
that said...... a savvy pensioner who has been putting some savings into investment ISAs, cash isas and premium bonds for decades are likely gonna be sitting pretty no matter how you slice it........... and that is fine imo. hell it is how i am planning for my future for the most part (along with my private pension any payingNI for a state pension).
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