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Mine as i said is weekly - been running 7 years continuously, options today might hv changed to monthly, but its the same thing with a total of 13 payments every 4th week
It works believe me - knowing u hv prepaid ur bill come 31st Jan already and only balancing payment to make, allows me to sleep peacefully and contented - cause try going to your bank manager and saying i need a overdraft or my limit increased to pay my tax bill !
Why not put it in premium bonds you could win
i put my tax money away every month
and I have had tax free wins
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Thats a great idea, no point in paying the tax man till you have to, as long as you set aside that money, rather than standing order into HMRC why not standing order into a savings account, isa or premium bonds so your money works harder.
Rather pay it and know its gone - i would prob spend it if i had access to it and regret it when the bill comes in
I don't believe in paying the taxman in advance, they are not doing Landlords any favours.
I have a separate bank account into which I put a sum each month to cover the tax, I usually put too much in so at the end of the tax year I have a little bonus which I give back to myself.
Not probably the best use of funds as others have said. But it makes paying the tax much less painful and knowing the money is sat there lets me sleep easy.
Following the announcement of s.24 I calculated that I'd have to increase rents by 27% to just cover the extra tax.So I've been putting up my rents incremently by 5-7%p.a. in anticipation, and to avoid a big single hike. Yes I've made some extra profit in the past couple of years but profitability will drop back as s.24 kicks in.
No mention of one of the obvious ones, rent rises.Mine were unchanged in a decade but have gone up 26% in the last 2 years and are still well below market value so more rises coming.Also, houses being refurbished will go out at much higher rents than before so basically I’ve managed to cover my liability at year 4 already.
For clarification, I did not include "rent rises" in my options as I don't believe that you can simply put up the rent, unless you have have below market rent for a long time, and there is headroom to raise it.My recent experience of letting a 4 bed house in Basingstoke which had previously been let out for four years at £1250.00 pcm, involved me dropping the rent by 12% to get a tenant.If you are able to raise rents, then lucky you, but I would never accept it as a "given" in the current market conditions. You only need the landlord down the road to drop the rent significantly and they have set a new base level. I believe we will see a lot of that going forwards.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I've worked out that in full S24 mode (ie. the 25% allowable mortgage payments) I will be paying another £2100pa, or lets say £200pcm. Whilst I'm not happy about it I do still feel when the pendulum has shifted over the balance point of 'not enough property to let' in the Govts eyes (probably 2-3 years after its actually reached that point of course due to Govt. brain lag) then s24 will be quietly removed at one of the budgets.
Years ago home owners got MIras and the tories took it away altogether
the tories we now have are a different breed
my own feeling is in comeing budget we will see the end of the 20% too
the tories if there in power will say invest via a company if you want to be a landlord
if labour comes to power all landlords will will pay a lot more tax
which ever way you look at this we are not wanted and we will not be encouraged