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Income tax paid by buy to let landlords now exceeds £3.8 billion annually – that’s more than double Tesco’s entire annual tax bill.
Research by the National Landlords Association shows that - assuming typical deductions are made for regular maintenance, finance costs, and miscellaneous legal and management expenses - landlords in England have a combined taxable income in excess of £19.1 billion.
Even if all these pay only the basic rate of Income Tax (and many will pay far more) this equates to an estimated annual contribution of £3.8 billion in Income Tax alone or £1,668 per landlord.
This is before additional liabilities such as Stamp Duty, Capital Gains Tax, VAT, and the Additional Property Levy are taken into account.
Meanwhile, the UK’s largest supermarket chain, Tesco PLC, paid £1.63 billion in tax in 2018.Full/source article Landlords also support the economy by paying lettings agents, builders, cleaners, handymen, insurance companies, plumbers, electricians, mortgage brokers ... the list goes on ... .This claim comes in the wake of the news that more than a third of landlords are looking to cut their annual spending - and many of them are considering ending their use of letting agents, according to the latest research by Kent Reliance.It seems that when landlords suffer, the wider economy suffers as well. Unintended consequences of Section 24 anyone ... ?SEE ALSO - What is Section 24 for landlords?UP NEXT - How much does it cost to be a landlord?DON'T MISS - Landlords contribute £15.9bn to the economyNOW WATCH:
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**
Kent Reliance B Soc survey suggests only 1/3rd of rentals are mortgaged - hence even more income tax payable on higher net profits.
LL's probably paying more than Amazon and Apple combined as well....
Good to see the contribution we are making. I wonder what excellent measures Philip Hammond will take with the budget to utilise the money to best effect?
The 3:15pm at Ascot perhaps???
I would love to see a more accurate tax bill paid by landlords including the additional SDLT and capital gains... Im sure given 40% tax etc it would be much higher... I wonder if that stat includes BTL properties in limited companies.
For balance, speaking as a former senior manager in the Retail sector, profits from retail are only around 3% of turnover, plus Tesco has created nearly half a million jobs plus millions more indirect jobs in their supply chain, that's a lot of income tax and employers national insurance paid into government coffers, not to mention revenue raised from the archaic business rates system.
Therefore I think the comparison is tenuous at best.
Tesco employ 440,000 and they are only 1 retailer. Grainger, the largest residential landlord I believe, employs a mere 250 people! Indirect employment is probably a similar comparison. Maybe a comparison of Tesco and Grainger's contribution to the economy would be more realistic.
A good teacher must know the rules; a good pupil, the exceptions.
Martin H. Fischer
Exactly, the article is a very clumsy attempt at pro landlord propaganda.
Silly thing is landlords have no need for such propaganda, customers (tenants) aren't interested in how much tax is paid or whether the Guardian criticises, they view a property they want to rent, if they like it and the price and condition is right they'll rent it.
Everything else is noise and seeing silly articles like this I'm getting closer to the point of thinking landlord associations are a waste of time.