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If you are accredited this will count towards your CPD hours, but the course is open to all.
Cost for SWLA members – £35, Cost for non-SWLA members – £40
Course will cover –
As well as other relevant issues.
Places secured upon receipt of payment, book your place through the office 01752 510913.
Course will be instructed by Stephen Fowler from Training for Professionals.
Article by GoSimpleTax
Register as a sole trader or set up a limited company? It’s a key question to answer when you decide to take the plunge and start your own business because your decision can have major implications.
Even after making a choice, with your business firmly established, every once in a while, you should crunch the numbers to work out whether the legal form you chose is still the right one for you and your business, whether that’s sole trader or limited company.
Sole trader v limited company: what’s more common?
Sole trader v limited company: personal financial risk
A major reason why people set up a limited company concerns personal financial risk. As the name suggests, your personal financial liability is limited, provided that you don’t trade recklessly or fraudulently or give personal guarantees for company loans. That’s because, in law, the limited company is a separate legal entity to its director(s).
The opposite is true for sole trader businesses. In law, there’s no distinction between you and your sole trader business, so you are personally liable for your business debts. That liability is unlimited, which can mean you’re forced to sell off things you own to pay off your business debts, including your car and home. This is less of a consideration if your business is unlikely to build up considerable debts.
Sole trader v limited company: customers and staff
Will potential or existing customers care if you run a sole trader business or limited company. Probably not, because being a limited company is no guarantee that your business is more stable, reliable or superior in any way. And being a sole trader is unlikely to prevent you from being able to tender for contracts, either.
Just because you set up your business on your own, doesn’t mean you’ll have to work on your own. Sole traders can employ others and many won’t care whether you’re a limited company or sole trader, because it has no bearing over how much you pay them or how you’ll treat them.
Sole trader v limited company: finance and tax admin
In many cases, accessing finance and funding won’t be any easier because you run a limited company rather than a sole trader business. Having a sound business plan can be much more important.
Running a limited company involves much more tax admin when compared to running a sole trader business, which is far simpler. You may be able to do some yourself, although with limited company admin, there’s more of it and it’s much more complicated.
You could pay an accountant to take care of your tax admin, of course, but if you’re operating a limited company, your fees are likely to be significantly higher, because an accountant will need to do more work for you. To save money, many sole traders do all of their own tax admin, including completing and filing their own tax returns, which is made much easier by technology.
How are sole traders and limited companies taxed?
As a sole trader, you’re taxed on your net profits (ie actual profit once all costs have been deducted). HMRC allows you to deduct many expenses and costs from your sole trader income and once any tax allowances have been accounted for and your other taxable income factored in, HMRC will tell you how much tax you owe.
You provide summaries of your sole trader income and expenses to HMRC via your SA100 tax return and SA103 supplementary page (hence “Self Assessment”).
You’re taxed according to the Income Tax band into which your total taxable income falls. You do not pay Income Tax on your first £12,570 of gross (ie total) taxable income, because this is your tax-free Personal Allowance. Thereafter:
The Personal Allowance decreases by £1 for every £2 of net income over £100,000 and if your net income is £125,140 or more, you don’t get any Personal Allowance. If you don’t claim any allowable expenses, you can claim the £1,000 tax-free Trading Allowance.
Limited companies pay Corporation Tax on their profits (19% for 2023/24 tax year), while Income Tax and National Insurance contributions (NICs) may be payable on salary the limited company pays you, with tax also payable on share dividend payments that you receive (8.75% if you’re a basic Income Tax payer; 33.75% if you’re a higher rate Income Tax payer; and 39.35% if you’re an additional rate Income Tax payer – all get a £1,000 tax-free Dividend Allowance).
Sole trader v limited company: which is more tax-efficient?
There’s a popular perception that operating as a limited company means you’ll pay less tax than if you were a sole trader. In some cases, with certain amounts of taxable profit, it’s true – but certainly not in all cases. And tax changes introduced in April 2023 mean the tax advantages of limited company structure are significantly less than they were.
Let’s look at some examples, to compare your take-home if you were a sole trader against your take-home as the sole director of a limited company.
Sole trader Ltd company Outcome
Profit £20,000 £20,000 You take-home
Total tax & NIC £2,334 £2,452 £118 more as a
take-home £17,666 £17,548 sole trader
Profit £40,000 £40,000 You take-home
Total tax & NIC £8,134 £7,670 £464 more as a
take-home £31,866 £32,330 Ltd Co director
Profit £50,000 £50,000 You take-home
Total tax & NIC £11,034 £10,278 £756 more as a
take-home £38,966 £39,722 Ltd Co director
Profit £85,000 £85,000 You take-home
Total tax & NIC £25,699 £25,773 £74 more as a
take-home £59,301 £59,227 sole trader
Profit £100,000 £100,000 You take-home
Total tax & NIC £31,999 £33,469 £1,470 more as a
take-home £68,001 £66,531 sole trader
Profit £150,000 £150,000 You take-home
Total tax & NIC £59,270 £62,424 £3,154 more as a
take-home £90,730 £87,576 sole trader
*All figures calculated by GoSimpleTax, based on 2023/24 tax year figures, and one limited company director taking £9,100 a year as salary and the rest as share dividends, to minimise their tax liability.
At the lower and higher end of the profit scale, operating a sole trader could give you a greater take-home, while you could also save money by doing your own tax admin.
However, even where your take-home as a company director is higher, much if not all of that can be wiped out if you have to pay an accountant to take care of your company and personal tax admin. Your monthly fee to an accountant could be, say, between £60 and £120 or more a month (ie £720 up to £1,440 or more a year), so operating as a limited company could in fact be less tax-efficient, not more.
How to switch from limited company to sole trader
It’s reasonably simple to change from a limited company to sole trader. You can either close down the limited company completely or make it dormant (ie the company still exists but doesn’t trade or receive income from other sources).
Income, Expenses and tax submission all in one. GoSimpleTax will provide you with tips that could save you money on allowances and expenses you might have missed.
Our software submits directly to HMRC and is the digital solution for Landlords to record income, expenses and file their self-assessment giving hints on savings along the way.
Covering all self-assessment pages, not just property, GoSimpleTax does all the calculations for you saving you ££’s on accountancy fees.
For tickets please visit;
SWLA will be there. Come and say Hi if you pass our stand!
People of State Pension age may be entitled to Pension Credit even though they may have modest savings, or a retirement income or own their own home. An award of Pension Credit can provide access to a range of other benefits such as help with housing costs, council tax, heating bills and for those aged 75 or over, a free TV licence. If you work with people over State Pension age, or with those supporting them, or know anyone who might be eligible, then please encourage them to find out more.
About Pension Credit
Pension Credit tops up weekly income to a guaranteed minimum level of £201.05 a week for single pensioners or £306.85 for couples. It is a tax-free payment for those who:
Someone may still get Pension Credit if they:
Use the Pension Credit calculator to find out how much Pension Credit someone could get – without giving any personal details.
A quick guide to entitlement
There are 4 main questions when considering whether a pensioner may get Pension Credit:
1.How old are they?
2.If they have a partner, how old is their partner?
3.What is their weekly income? Is it less that £201.05 if they are single or £306.85 if they are a couple?
4.Do they have any savings? Have they got less than £10,000?
Pension Credit True or False
Useful Links
The Renters (Reform) Bill will deliver on the government’s commitment to “bring in a better deal for renters”, including abolishing ‘no fault’ evictions and reforming landlord possession grounds. It will legislate for reforms set out in the private rented sector white paper published in June 2022.
Please note – 17 May 2023 was the Bill’s first reading in Parliament. The next step is a second reading which is where MPs have a chance to debate the themes of the Bill. You can track the progression of the Bill here; https://bills.parliament.uk/bills/3462
The Renters (Reform) Bill will improve the system for both the 11 million private renters and 2.3 million landlords in England. The Renters (Reform) Bill will:
Alongside the Renters (Reform) Bill, the government are working in partnership with the Ministry of Justice and HM Courts and Tribunals Service, to ensure that, in the small proportion of tenancies where court action is required, court users can use a modern, digital service. This remains a priority for the government. Following the recommendation of the Levelling Up, Housing and Communities Select Committee, the government will align the abolition of section 21 and new possession grounds with court improvements. This includes end-to-end digitisation of the process and working with the courts to explore the prioritisation of certain cases, including anti-social behaviour.
The private rented sector white paper also committed to further reforms to support both landlords and tenants. The government will bring forward legislation at the earliest opportunity to:
All information from gov.uk
For more information on the measures in the Bill, please visit:
The Renters (Reform) Bill will deliver the government’s commitment to a fairer private rented sector. It will legislate for reforms set out in the private rented sector white paper published in June 2022.
The Renters (Reform) Bill will improve the system for both the 11 million private renters and 2.3 million landlords in England. Reforms are carefully balanced and have been developed in consultation with landlord and tenant groups over the past five years. The Renters (Reform) Bill will:
| · Abolish section 21 ‘no fault’ evictions and move to a simpler tenancy structure where all assured tenancies are periodic – providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction;
· Introduce more comprehensive possession grounds so landlords can still recover their property (including where they wish to sell their property or move in close family) and to make it easier to repossess properties where tenants are at fault, in cases of anti-social behaviour and repeat rent arrears; · Provide stronger protections against backdoor eviction by ensuring tenants are able to appeal excessively above-market rents which are purely designed to force them out. Landlords will still be able to increase rents to market price for their properties. · Introduce a new Private Rented Sector Ombudsman that private landlords must join that is intended to provide fair, impartial, and binding resolution to many issues and to be quicker, cheaper, and less adversarial than the court system; · Create a Privately Rented Property Portal to help landlords understand their legal obligations and demonstrate compliance, alongside providing better information to tenants to make informed decisions when entering into a tenancy agreement. It will also support local councils – helping them target enforcement activity where it is needed most; and · Give tenants the right to request a pet in the property, which the landlord must consider and cannot unreasonably refuse. To support this, landlords will be able to require pet insurance to cover any damage to their property. |
Alongside the Rented Homes Bill, we are working in partnership with the Ministry of Justice and HM Courts and Tribunals Service, to ensure that, in the small proportion of tenancies where court action is required, court users can use a modern, digital service. This remains a priority for the government.
The private rented sector white paper also committed to further reforms to support both landlords and tenants. We remain fully committed to implementing these reforms and will bring forward legislation at the earliest opportunity to:
| · Apply the Decent Homes Standard to the private rented sector to give renters safer, better value homes and remove the blight of poor-quality homes in local communities. This will help deliver the government’s Levelling Up mission to halve the number of non-decent rented homes by 2030. We launched a consultation in September 2022 to ensure the Decent Homes Standard is applied and enforced appropriately and fairly in the private rented sector. We will respond to this and set out the next steps in due course;
· Make it illegal for landlords and agents to have blanket bans on renting to tenants in receipt of benefits or with children – ensuring no family is unjustly discriminated against when looking for a place to live; and · Strengthen local councils’ enforcement powers and introducing a new requirement for councils to report on enforcement activity – to help target criminal landlords. |
We’ve put together a helpful guide which explains the reforms in more detail which can be found here https://www.gov.uk/guidance/guide-to-the-renters-reform-bill
The Levelling Up, Housing and Communities Select Committee launched its inquiry into the Private Rented Sector Reform in July 2022. The aim of the inquiry was to scrutinise the Government’s plans to, among other things: introduce a decent homes standard for the private rented sector; reform the system of tenancies and abolish no-fault evictions; reform the grounds on which landlords can take possession of their properties; and better protect tenants from unfair rent increases.
The committee sought contributions from key stakeholders including the NRLA, the British Property Federation, Shelter and Generation Rent and members of the public to inform its thinking. The Committee published its report and recommendations in February 2023.
We have considered and responded to each of the committee’s recommendations in our response which we will publish shortly.
SWLA COMMENTS
When it is introduced to Parliament (expected today), the Bill will be published in full, which is known as the ‘first Reading’.
The next step is a Second Reading, which is the first opportunity for MPs to debate the general principles and themes of the Bill. This is expected to take place week commencing 5 June 2023.
The legislation will implement many of the proposed measures from the White Paper ‘A Fairer Private Rented Sector’ that was published in June 2022. This can be read in full here; https://www.gov.uk/government/publications/a-fairer-private-rented-sector
Read the Government announcement here; https://www.gov.uk/government/news/government-introduces-landmark-reforms-to-deliver-fairer-private-rented-sector-for-tenants-and-landlords
In a Sky News interview last week, Michael Gove announced that the Renters Reform Bill would be ‘out next week’ and introduced into Parliament. This decision has now been back-tracked due to ‘procedural issues’.
Over the Bank Holiday weekend, speculation was mounting that Tory backbenchers were unhappy with the pro-tenant, anti-landlord sentiment contained in the proposed legislation.
The Bill was first pledged by the Conservative administration back in 2019.
A Department for Levelling Up, Housing & Communities spokesman said: “We are absolutely committed to delivering a fairer deal for renters.
“We will bring forward legislation very shortly, which will include a ban on ‘no fault’ evictions, so that all tenants have greater security in their homes and are empowered to challenge poor conditions.
“We are also introducing a Decent Homes Standard for the Private Rented Sector for the first time ever which will make sure privately rented homes are safe and decent.”
We had a great turn out last night at the Future Inn, Plymouth for our General Speaker Meeting. We had over 65 members in attendance.
Huge thanks to our brilliant speakers.
Iain Pring and Sean Bolter from Westcotts Chartered Accountants, shared their extensive knowledge of all things tax related. They discussed tax deductible expenditure, capital gains, inheritance tax planning and Making Tax Digital.
Our second speaker of the evening was Martyn Taylor of Ashley Taylors Solicitors, who made quite a journey in order to present for us. He shared his experience on court possession cases and gave great advice on how to prevent landlord errors in order to ensure a smooth tenancy. Martyn also shared tips on how to gain possession when required. Look out for Martyn’s next webinar, which SWLA members are welcome to join for free.
Thank you to all who attended, it was great to see everyone and we look forward to the next meet!
Article by GoSimpleTax
What key tax changes are planned from 6 April 2023 and how could they impact you?
Income Tax
1. On 6 April 2023, the Income Tax additional rate threshold (ART) will fall from £150,000 to £125,140. When you earn £125,140 or more a year, you don’t get the £12,570 standard Personal Allowance (PA), because £1 of the PA is taken away for every £2 of your income that’s above £100,000.
According to HMRC: “From 2023 to 2024, this measure will impact around 792,000 taxpayers, of whom around 232,000 will pay the additional rate of tax who would not have done so had this threshold [remained] at £150,000.”
2. The additional rate of tax will remain at 45% in England, Wales and Northern Ireland, but it will rise from 46% to 47% in Scotland (the higher rate of Income Tax in Scotland will also go up from 41% to 42%), which won’t be welcome news for higher-earning landlords in Scotland.
Capital Gains Tax
3. If you sell property after 6 April 2023, you could well pay thousands of pounds more Capital Gains Tax (CGT). That’s because the annual exempt amount (AEA – how much gain you can make after disposing of an asset before CGT is due) will fall from £12,300 to £6,000 in 2023/24.
Need to know! After the AEA is accounted for, basic rate Income Tax payers pay 18% CGT on gains made from selling residential property (10% on gains from other chargeable assets). Higher rate Income Tax payers pay 28% CGT on gains made from selling residential property (20% on gains from other chargeable assets).
Dividend Allowance
4. From 6 April 2023, the Dividend Allowance will be reduced to £1,000 (it’s been £2,000 since April 2018), which is the amount you can earn in dividend payments before tax is payable. The Dividend Allowance will again be halved in April 2024, falling to just £500.
The amount of tax you pay on dividend income above the dividend allowance, after the Personal Allowance, depends on your Income Tax band:
If you own property and receive dividends from your property company, obviously, these changes are more likely to directly affect you. However, they may or may not be relevant if you pay Income Tax on rental income via Self Assessment but also receive dividend income from shares that you own.
Stamp Duty
5. Landlords planning to buy another property, holiday home or buy-to-let property for more than £40,000 will need to pay an additional 3% on each tier of stamp duty in England and Northern Ireland, and an additional 4% in Wales and Scotland.
In England and NI in the 2023/24 tax year that equates to:
Property price Stamp Duty Rate
Up to £250,000 3%
£250,001- £925,000 8%
£925,001-£1.5m 13%
More than £1.5m 15%
Overseas buyers must pay a 2% surcharge on top of the normal Stamp Duty rates, as well as a 3% buy-to-let surcharge. So, for holiday homes or buy-to-let properties, if you’re an overseas buyer you’ll pay 5% more than the standard rate for UK nationals.
Need to know! The Stamp Duty threshold will fall back down to £125,000 from March 2025. It was doubled in the September 2022 mini-Budget.
Making Tax Digital
6. HMRC has delayed introducing Making Tax Digital for Income Tax (MTD for ITSA). It was planned for introduction from April 2024, for sole traders and landlords with a taxable income of more than £10,000, which may have encouraged many landlords to voluntarily start complying with MTD requirements this year.
However, the first phase of MTD for ITSA won’t now be introduced until April 2026 and will only impact those with taxable income of more than £50,000 a year. Further phases of introduction are planned after April 2026.
Time to file your Self assessment tax return?
You can file your 2022-23 Self Assessment tax return any time from 6 April 2023. According to HMRC, 66,465 2021/22 Self Assessment tax returns were filed on 6 April 2022 (almost double the 36,939 Self Assessment tax returns filed on 6 April 2018). You don’t have to be such an early bird, of course, but the sooner you do it, the better.
Need to know! Apart from enabling you to avoid the annual headache that can result from leaving your Self Assessment tax return until January, with the online filing deadline looming on midnight 31st, getting it done earlier means you can find out much sooner whether you’re due a tax rebate.
Income, Expenses and tax submission all in one. GoSimpleTax will provide tips that could save you money on allowances and expenses you might have missed.
Software submits directly to HMRC and is a digital solution for Landlords to record income, expenses and file their self-assessment giving hints on savings along the way.
Covering all self-assessment pages, not just property, GoSimpleTax does all the calculations for you.
SWLA members receive a 25% discount off GoSimpleTax via www.gosimpletax.com/swla
Article by GoSimpleTax
HMRC has advised that for the 21/22 tax year, 385,000 taxpayers filed paper Self Assessment tax returns. If you were one of them, this could affect you, as HMRC is currently writing to taxpayers to inform them they will not automatically receive a tax return form for 22/23. Letters are currently being sent out between 23rd March and 4th April 2023.
This is a step in pushing taxpayers to file online as part of the government’s objective to have everyone interacting digitally with HMRC and other government bodies.
Who will receive a letter?
135,000 taxpayers who normally file their Self Assessment tax return on paper will receive a letter from HMRC, which will advise them they won’t receive a tax return form automatically this year. Instead, they will be asked to file their return online via gov.uk or by using commercial software.
The digital future
HMRC has a target over the next two years to reduce the volume of letters and forms it sends out via paper. It will continue to persuade taxpayers to use its digital channels where possible which is usually quicker and easier than communicating via post or over the phone.
What if you cannot file online?
Should you not have internet access you are advised to contact HMRC on 0300 200 3610 where you can request a paper form to be sent to you.
Taxpayers aged over 70, who are not already filing digitally and who do not have a tax agent appointed will continue to automatically receive a paper tax return form. Likewise, those who are not digitally capable, such as disabled employers who may employ personal assistants and carers – in these circumstances they will be able to choose to communicate with HMRC non-digitally.
There are other exclusions and special cases from online filing, listed on gov.uk, in which the taxpayer can use digital software to print the form in a format acceptable to HMRC.
Income, Expenses and tax submission all in one. GoSimpleTax provide tips that could save money on allowances and expenses that may have been missed.
Software submits directly to HMRC and is a digital solution for Landlords to record income, expenses and file their self-assessment giving hints on savings along the way.
Covering all self-assessment pages, not just property, GoSimpleTax does the calculations for you.
The UK Government has announced an action plan to crack down on anti-social behaviour giving more powers to the police to target perpetrators with swift and visible justice in England and Wales.
16 areas will be funded to support either new ‘hotspot’ police and enforcement patrols or trial a new ‘Immediate Justice’ scheme. A select few areas will trial both interventions and following the initial trailblazers, both schemes will be rolled out in 2024.
A new reporting tool will also be developed over the next twelve months to act as a digital one-stop shop where people can quickly and easily report incidents of anti-social behaviour.
Under the zero-tolerance approach, nitrous oxide or ‘laughing gas’ will also be banned. The drug is now the third most used among 16 to 24-year-olds in England and both the police and the public have repeatedly reported links between the use of the drug and nuisance or anti-social behaviour.
The UK Government’s plan to reform the private rented sector outlines tougher enforcement on nuisance tenants.
The Action plan highlights that sustained acts of intimidating or disruptive behaviour will not be tolerated and should lead to the eviction of the tenant involved. The UK Government will be changing laws and arming landlords with tools to ensure that anti-social tenants will face consequences including making the grounds for possession faster and easier to prove.
Other measures include:
We need to see clarity on how the measures will work in practice and when the new legislation will be in effect, until then landlords will continue to struggle to evict nuisance tenants.
Article by PropertyMark; https://www.propertymark.co.uk/resource/landlords-to-be-given-more-powers-to-evict-unruly-tenants.html
THIS INFORMATION IS FOR THE NON-DOMESTIC PRIVATE RENTED SECTOR – COMMERCIAL LETS
In 2018, changes to the law made it illegal to sign a new or renewed lease for a non-domestic property that does not meet the MEES regulations, meaning for any property with an Energy Performance Certificate (EPC) rating of F or G.
From April 2023, the regulations will extend to all privately rented properties, including those where a lease is already in place and a property is occupied. Therefore, unless an exemption applies, it will be unlawful to continue renting out any property that does not meet the new regulations.
It has been estimated that up to 20% of non-domestic properties could have an EPC rating below an E, meaning that unless they were upgraded to meet the minimum standards or an exemption is successfully registered, it is now illegal to rent them.
Enforcement of the regulations is carried out by the local authority. Where a property does not meet the regulations, landlords can be fined up to £5,000 per property or up to 10% of the rateable value of the property. In addition, there is also a risk of loss of value of the property, with the marketability likely to suffer and lenders, banks, and pension funds less inclined to consider properties that are EPC band F or G.
There are a number of exemptions available to landlords. The full list can be found in the Non-Domestic MEES Guide. However, it is important to note that most exemptions are only valid for a maximum of five years. After this time, landlords are required to resume efforts to improve the EPC rating of their properties. To register for an exemption, visit the government webpage, Register an Exemption.
Further changes to the MEES regulations are expected over the coming decade.
Article from Elmhurst Energy; https://www.elmhurstenergy.co.uk/blog/2023/03/28/changes-to-non-domestic-mees/
An updated ‘How to Rent Guide – The Checklist for Renting in England’ has been published by the government.
https://www.gov.uk/government/publications/how-to-rent
Landlords or letting agents should give the current version of this guide to the tenant when a new assured shorthold tenancy starts. There is no requirement to provide the document again if the assured shorthold tenancy is renewed unless the document has been updated.
All new tenancies and renewals from and including 24th March 2023 will need this new version provided!
Thursday 19th October 2023 – 9:00 – 4:30pm
Venue – Online
Price – £65 for members of SWLA, £75 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or info@landlordssouthwest.co.uk to book your place, places only secured on receipt of payment.
Over 1150 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
We are proud to announce Landlord Accreditation South West (LASW) are founder members of the West of England Rental Standard.
Tuesday 20th June 2023 – 9:30 – 4:30pm
Venue – Astor Room, Plymouth Guildhall, Royal Parade, Plymouth PL1 1HA
Price – £65 for members of SWLA, £75 for non – members for one day course.
Course covers ASTs, Deposits, Section 21s, Section 8s, HMOs, Gas and Electrical Safety, Inventories and much more.
The course will provide you with all the skills to start, manage and finish a tenancy.
Places still available. Contact the office on 01752 510913 or via the website to book your place, places secured on receipt of payment.
Over 1150 landlords have already completed this course since September 2011.
Course can lead to Accreditation, if required.
We are proud to announce Landlord Accreditation South West (LASW) are founder members of the West of England Rental Standard.
Feeding the Unfortunate, Lost, Lonely, Hungry, Rough sleepers and Homeless – a local charity who gather people together over food, supporting local people who may need extra support.
Andy Metcalf of FULLHRH receiving a cheque from Steve Lees, SWLA Chairman.
Wednesday 19th April 2023
Future Inn Hotel, William Prance Road, Plymouth PL6 5ZD
7.15pm for a 7.30pm start
Speakers will include:-
Ian Pring & Sean Bolter – Westcotts Chartered Accountants:
Tax matters in the PRS – Tax Deductible Expenditure, Capital Gains, Record Keeping & Making Tax Digital Preparation, Inheritance Tax Planning.
Martyn Taylor – Ashley Taylors Legal – Possession Specialists:
Courts are finding Section 8s & Section 21s invalid more often; How to prevent that. Also – a Renters Reform Bill update.
Wine & orange juice will be served during the evening.
We hope to see you there, guests are very welcome.
Please remember to register your car at the hotel reception upon arrival.
24th to 27th March 2023 – 10% off TradePoint/B&Q – SWLA TradePoint Members receive an extra 10% off on top of this.
We have been informed that the following guides are being updated by the government during week commencing 13 March 2023:
‘How to rent: the checklist for renting in England’ You must provide your tenants with a copy of the latest version of the ‘How to rent’ guide at the start of a tenancy, either as a hard copy or, if agreed with the tenant in writing, via email as a PDF attachment. You cannot rely on a section 21 notice to obtain possession from the tenant if you have not provided this document. We recommend that landlords access the guide from the gov.uk website to ensure that it’s the most up to date version that tenants receive.
‘How to let’ This guide is for current and prospective landlords. It explains the responsibilities, legal requirements, and best practice for letting a property in the private rented sector.
The ‘Make Things Right’ campaign aims to ensure more social housing residents who need support know how to make a complaint.
The ‘Make Things Right’ campaign aims to ensure more social housing residents who need support know how to make a complaint.
It is based on the idea that everyone deserves a home that is safe, secure and well maintained, and anything less is unacceptable. And if a resident has reported an issue and it hasn’t been fixed, it’s now easier to make things right.
The campaign sets out the steps of the complaints process that residents can take if they are unhappy with the service from their social housing provider.
This toolkit provides materials which landlords, stakeholders, and residents can use to spread the word among residents about how to make complaints, including by signposting to gov.uk/social-housing-complaints for advice.
The campaign will be running across the following channels:
Advertisements on radio and digital audio, social media, and toolkit resources will be translated into Arabic, Bengali, Polish, Punjabi, Romanian and Urdu.
The advertising campaign will run until April 2023, with the use of communications toolkits continuing. Campaigns toolkits will remain live online after April 2023. Planning is underway for future campaigns.
The campaign uses the phrase “it’s now easier to make things right”.
While the government is acting in many ways to improve the complaints process and conditions in social housing, the phrase’s use in this campaign mainly refers to the recent removal of the “democratic filter” and the introduction of a Complaint Handling Code for social housing providers.
The removal of the democratic filter means it is quicker and easier for residents to take complaints straight to the Housing Ombudsman Service. It has done this by removing the need to go to an MP, local councillor or tenants’ panel first, and to wait 8 weeks after completing the landlord’s complaints processes, before being allowed to take a complaint to the Ombudsman.
The Complaint Handling Code took effect from 1 April 2022 and landlords had until 1 October 2022 to become compliant. In short, it sets out good practice that will allow landlords to respond to complaints effectively and fairly. This includes good communication with residents about how to complain, and saying only two stages are necessary in landlord’s processes, with clear timeframes set out so residents know when to expect a response.
If you have any questions about the campaign, or can share a case study of a resident helped by the complaints process (and even where landlords have learned from the process), please contact externalaffairs@levellingup.gov.uk.
Article by Gov.uk; https://www.gov.uk/guidance/make-things-right-introduction-and-how-to-help
At the end of December 2022, HMRC and the Treasury announced that Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) has been postponed until April 2026 and some of the expected eligibility requirements have also been amended. This will no doubt come as a relief for some.
In a written statement, HMRC stated:
“MTD for ITSA will now be introduced from April 2026, with businesses, self-employed individuals, and landlords with income over £50,000 mandated to join first. Those with income over £30,000 will be mandated from April 2027.”
This gives the self-employed sole traders and affected landlords more time to prepare for the switch. Furthermore, some very small businesses and landlords will now be below the initial thresholds and may not need to comply until all taxpayers are required to comply.
Why has the MTD for Income Tax been delayed?
The accounting and taxation profession had been putting pressure on the government to delay MTD, as it did not feel that tax payers or HMRC were ready for such changes. HMRC has officially stated that the reason behind this delay is to relieve pressure on businesses caused by the current economic environment.
Furthermore, HMRC currently believes a more gradual implementation of MTD will give affected taxpayers, accountants, and the government more time to prepare.
Does this mean you can forget about MTD?
Sorry, no! MTD is not going away, it has just been postponed and the criteria tweaked a little. It is still important to check that you are making plans to ensure you are ready for the changes before they become mandatory.
We are expecting HMRC to pull everyone into the new MTD system at some point in the future, regardless of income.
What about Partnerships……?
If your business trades as a partnership, then the above compliance dates will not apply. As it currently stands, HMRC have not got a compliance date for individuals trading within a partnership.
Article by L.A.Lamerton & Co Accountants – Tel 01752 255667 – This information is designed to assist understanding and does not cover all aspects applicable. We would strongly recommend that you refer to the governments published information at www.gov.uk e.& o. e.
The following case provides vital clarification about the responsibilities of ‘rent-to-rent’ companies. Rent-to-rent companies take over the running of a property for a landlord.
The ruling in the case of Rakusen v Jepsen will have important implications for the private rented sector as a whole.
The landlord, Rakusen, agreed to let a flat to a rent-to-rent company. The property required a licence, but the company did not apply for one.
As a result of the failure to be licenced, the former tenants of the flat sought a Rent Repayment Order against Rakusen rather than the rent-to-rent company – even though he had not received rent directly from the tenants.
At an initial tribunal it was ruled that the Rent Repayment Order could be applied for against Rakusen. The Court of Appeal however later overturned the decision and ruled in Rakusen’s favour.
The Supreme Court ruled that where rent-to-rent companies take over the running of a property, they cannot shirk responsibility and expect to leave the landlord to pay for their legal failings.
Ben Beadle of the NRLA said “The ruling makes clear that it is the responsibility of rent-to-rent companies acting as a landlord to ensure that relevant legal requirements are met, since it is they who receive tenants’ rent. It is simply not right that such companies can take money from people without any responsibility for the property they are running.”
To read the full case background see https://www.supremecourt.uk/cases/uksc-2021-0188.html
Article Abridged from Property Industry Eye
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