Short holiday lets - tax and tenancy agreement question /

the2ofus


Joined: 13/02/2008
Posts: 637

Message Posted:
25/10/2011 20:04

On behalf of friends who own a villa here (property name is in 2 wives names) - they rent their villa out (web sites) for summer holiday lets of 1, 2 or 3 weeks duration. They have been paying rental tax (10%) ever since they started renting it out. They are here for 2 weeks (have 3 days left) and have had a visit from Tax man.

He says -

1) They owe back tax from 2007/2008 - they are sure it has been paid but all their paperwork is back in UK.

2) They have 75 days to pay this & fine for not responding to letters (that were not able to be delivered as they were not here !) or the matter will go to Court.

3) They must have a signed legal declaration that the 2 wives own the property (not just that it is on Kocan) and the rental tax payable needs to be paid in 2 parts (50% in each wife name).

4) For every paying guest they must have a seperate Tenancy agreement - even if it is only 3 days/1 week/2 week rental.

Does anyone have any ideas on what they should do - or can help ?