Vicksen

I've just posted this on the enjoykalkan forum too :

All those folks looking over their left shoulder for the Turkish tax authorities catching up with them had best save a glance over their right shoulder for HM Customs & Revenue.

HM Revenue and Customs claims to have details of 400,000 people who receive rental income earned from their holiday homes in the UK or abroad.
They could face penalty charges, prosecution and, in some case, could be forced to pay up to double the tax they owe.

There is an amnesty up till June 22nd, up till which date you can inform the taxman of the income on which you have not paid tax, and face a less severe penalty, of about 10% of your tax bill.
Once you have informed the taxman that you have back-tax to pay, you have until November 26 to work out the figures and pay the bill along with the fine.

But if you fail to register and owe tax, the HMRC is determined to hunt you down. If you ignore the amnesty, you face much harsher penalties - of up to 100% of your tax bill and possible prosecution.
People with undeclared offshore savings income are also to be targeted.

You've got a week to 'fess up folks!

biggles

i hope that dont apply to us ,we have never rented our place out ,and my daughter goes to our place but obviously no charge.i wonder if they are saying you have to inform them that you own a home abroad,i would not think so unless as a lot of people do you rent it out.

Rachels100

I just read it is only if you earn money. Renting your place out and or have an overseas bank account. I have an overseas bank account, but it has made like £10 a year or something so small, I dont have to declare it. God knows how u prove to them u dont rent it out though. Guess you would have to give neighbours names and numbers etc so they could check. Think they would also look at your bank account for rental evidence. Deposits of money going in. I have kept all reciepts of money transfers overseas. Guess they would want proof of where money came from..

Rach

Harem

Don't see how it can apply to you then, Biggles, as you have no rental income to declare. The Tax Man will check all your bank accounts to see what unaccounted for cash is deposited.

immac

If you let friends and relatives use it, it is considered rental. The fact that you don't take the money off them is not the point, and you still owe the tax.

Ian

biggles

yes i see what you mean but i wonder how many people get them to pay in lire while they are out there thus avoiding showing up in uk banks.

biggles

also if as is said you still pay tax even if friends or relatives use it ,then you will just have to tell them they will have to pay what tax would be due as though it was rented out ,after all they cant complain about that and why should you pay it when they are getting it for nothing.

biggles

regardin g tax on bank account turkey and the uk have a reciprocal tax agreement and as far as i have read you only pay tax in either country ,not both . ie you pay tax on interest earned on your interest turkish acc to turkish tax people ,you dont then pay again to uk tax . if you notice they give you 18% but they take the tax off and what is left you get.

Vicksen

Biggles, if a house owner receives rental in YTL, in that case they are due to pay tax to the Turkish Maliye.

Its correct to say there is a reciprocal tax agreement so that double taxation is not applied, but you need to show the one taxman the documentation from the other to prove that you have coughed up one lot (ie if you pay HM Customs & Revenue, you need to show proof of this to the Maliye in Turkey, and vice versa.)

As regards simply taking cash in Turkey and not putting it through a bank account, there is a new law going through shortly which requires a house renter to have a bank account in Turkey into which house rental is paid. This must be shown to the Maliye on demand.

What is fiendishly clever is that should you as a renter choose NOT to do this, but to take cash to try to avoid taxation, then if the tenant subsequently refuses to vacate the premises at the end of his term of rental, you would have no recourse to court to have him removed, because the court will require to see the Bank Book showing the House Rental transactions.

And will say "if there is no Bank Book, there is no contract!"