A new client has been pay his landlord £500 per month rent for his flat the past few years under a 'Gentleman's Agreement' . There are 19 others in the block paying the same landlord £900 per month. In exchange for this reduction , the client does the general administration relating to the banking and general collection / servicing arrangements. Whilst HMRC cannot dictate what rent a landlord should impose , it's obvious that the fair market value of the exchange must be deemed as income. I concur the Revenue's Business Income Manual BIM 41075 here.
But who should declare - and declare what. The landlord for rent due or the new client tenant for providing a service for a benefit in kind ? Or both ???