Not declaring income from property

I found out this morning that the partner of one of my friends is receiving income from rental property and not declaring it. She is also employed.

When I asked her why she hadn't declaring it she said she "didn't need to" as she wasn't making a "profit". Her mortgage is £600pm (or there about) and rent received is £520. She therefore thinks that because her mortgage is more than the rent, that she is not making a profit. Her mortgage is a capital repayment mortgage and is NOT a buy to let product.

I tried my best to explain that the capital repayment element of her mortgage was not an allowable expense, but she was not prepared to listen. I also told her that she HAS to declare the income, and again she was not prepared to listen.

Maybe I wasn’t speaking in layman’s terms and she didn’t understand. How can I explain this in a more simple way?

Comments
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All too common

Euan MacLennan |
Euan MacLennan's picture

She was quite clear that she

accountslady |

Keep in in proportion

neileg |

As a last shot tell her about

bernard michael |

Or you could...

Flash Gordon |
Flash Gordon's picture

Use this:

mattgriffiths |
mattgriffiths's picture

I've just almost fallen off my chair.....

accountslady |

lol

ShirleyM |
ShirleyM's picture

Funny solicitor if they think

bernard michael |

I told her that if she wants

accountslady |

Not really!

ShirleyM |
ShirleyM's picture

Not reportable

davidwinch |
davidwinch's picture

I think you have done all you

bauer_hilts |

No, she has never lived in

accountslady |

I trust that

ACDWebb |
ACDWebb's picture

Well if she hasnt lived in

bauer_hilts |

Not reportable

davidwinch |
davidwinch's picture

Hi David

bauer_hilts |

When to report

davidwinch |
davidwinch's picture

Hi David

bauer_hilts |

It's not that simple

bernard michael |

Don't forget

neileg |

Pleading ignorance

davidwinch |
davidwinch's picture

not a client

david5541 |

reporting someone

david5541 |