Signup to the SWLA
On the day of Her Majesty Queen Elizabeth II’s funeral, our offices will be closed as a mark of respect.
The office will reopen at 10am on Tuesday 20th September.
Renting Minefield Energy Efficiency – The world (& the law) is changing
Wednesday 22nd September 2022
Exeter Racecourse, Haldon Hill, EX2 4DE
5.00pm – DOORS OPEN
5.00pm to 6.00pm NETWORKING
6.00pm
Chair: Hannah Darling (National Residential Landlords Association)
6.05pm
What questions should you be asking the professionals – and yourself?
Dick Scott (Monitor BCS)
6.30pm
Decarbonising Homes with solar PV and other technologies
Paul Rogers (National Energy Action)
7.00pm to 8.00pm NETWORKING
8.00pm
A Practical Illustration of a Landlord`s legal Duties, Today and Tomorrow!
Phil Keddie (Sunshine Property Consultants)
8.20pm
Supporting tenants through the cost of living crisis
Exeter Community Energy & Lendology CIC
8.40pm
Property Tax Update
Debbie Franklin, Peplows
9.00pm FINISH
There is free parking.
Register for your free place now here.
For more information please contact 01392 265833 email claire.hope@exeter.gov.uk
GoSimpleTax: Demystifying Landlord tax and expenses when filing your tax return
Sign-up Link – https://meet.zoho.com/s00COjUzQ8
Date: Thursday 22nd September at 11am.
Description – GoSimpleTax’s in-house tax expert, Aiden Corcoran, will look to de-mystify landlord tax and expenses. Aiden will talk about…
Questions can be emailed in advance to leeanne.ogden@gosimpletax.co.uk
Presenter Bio
AIDEN CORCORAN
PERSONAL TAX SENIOR
Aiden has joined the GoSimpleTax team as a Chartered Tax Advisor, sharing his wealth of knowledge via our support desk and webinars. Aiden has 8 years of tax knowledge with him and aims to help develop new services.
**PLEASE NOTE, THIS IS NOT AN SWLA WEBINAR**
Landlords legal responsibilities – Annual Gas Safety Checks
We are proud to be supporting Gas Safety Week 2022, taking place 12 – 18 September.
Gas Safety Week is an annual safety week to raise awareness of gas safety and the importance of taking care of your gas appliances. It is coordinated by Gas Safe Register, the official list of gas engineers who are legally allowed to work on gas.
Badly fitted and poorly serviced gas appliances can cause gas leaks, fires, explosions, and carbon monoxide (CO) poisoning. CO is a highly poisonous gas that can kill quickly with no warning, as you cannot see it, taste it, or smell it.
Landlords are legally responsible for the safety of their tenants. Landlords must make sure maintenance and annual safety checks on gas appliances are carried out by a Gas Safe registered engineer to ensure their tenants and wider communities stay safe.
If you’re a landlord, you are legally obliged to make sure:
Before any gas work is carried out always check the engineer is qualified to carry out the work that needs doing e.g., natural gas, domestic boiler. You can find this information on the Gas Safe Register website or by checking the back of the engineer’s Gas Safe ID card. Encourage your tenants to also check the card when the engineer arrives at the property, and to be aware of any warning signs that their gas appliance is working incorrectly, such as dark or sooty staining, excess condensation and pilot lights which frequently blow out.
For more information and to find or check an engineer visit GasSafeRegister.co.uk.
Private landlords, letting agents and anyone else involved in letting property are invited to East Devon’s premier event on 22 September 2022 from 5pm at Exeter Racecourse. In partnership with Exeter City Council and Teignbridge District Council.
There will be exhibitions from specialist companies covering all aspects of property management and energy efficiency. As well as support businesses and organisations to help smooth the tenancy pathway. There will be a range of professionals on hand to answer your questions.
Helpful bite-size talks throughout the evening will focus on energy efficiency; accessing finance for retrofit projects; financial advice; updates on recent policy and legislation changes.
Doors open at 5.00pm for networking opportunities and refreshments. Bite-size talks start from 6.00pm.
Exeter Racecourse, Haldon, Near Exeter, EX2 4DE
There is free parking.
Register for your free place now here.
For more information please contact 01392 265833 email claire.hope@exeter.gov.uk
Speakers will include:-
Stella Goodman – Director of Excaliber Associates:
Rate rises? Recession? What does this mean for the BTL lending market?
Sue Pope – Fire Safety Consultant at Health & Safety Matters:
Fire Safety: Landlords, are you compliant?
The Department for Levelling Up, Housing & Communities (DLUHC) has dismissed concerns from HMO student landlords that its plans to bring in periodic tenancies will damage the sector.
Under the proposals, students will be able to give two months’ notice at any time, making finding a replacement very difficult. Students will also be able to remain in the property after the end of the academic year as there will be no fixed term.
In its response, the DLUHC explains that while it expects most students to continue to move in line with the academic year, some might face circumstances beyond their control and will need to vacate a property early, or could be locked into contracts for poor quality housing.
A department spokesman says: “Some students have families, local roots, live with non-students, or have other reasons why they may wish to remain in the property. We do not think it would be fair to apply different rules to students who often require the same level of security as other tenants, or face poor standards within the private rented sector. Therefore, all students who are renting a private home will have periodic tenancies, providing the same certainty as all other tenants will enjoy.”
It adds that it is fair to exclude purpose-built student accommodation landlords who have joined government approved codes of practice from the new regime as these codes set, “vigorous standards for the safety of student accommodation, the management of the property and the relationship between managers and student tenants”.
SWLA hope that this decision within the Rental Reform is rethought, so that students and landlords can continue to secure their next academic year’s tenancies early and have some certainty with their accommodation/letting plans.
Article Abridged from Landlord Zone
The system allowing Adjusted checks (using Zoom calls and copies of documents for example), ends on 30 September 2022.
From 1 October 2022, agents and landlords responsible for tenancy applications and repeat Right to Rent checks will need to revisit their processes in readiness either for a return to manual face-to-face checks (which will still be permitted where someone shows eligible identification as a UK and Irish citizen) or be signed up to one of the proptech service providers certified by the UK Government as a digital identity service provider (IDSP). Checks on overseas nationals will need to be processed using the Home Office’s share code system which can be accessed by agents and landlords, free of charge.
Adjusted checks were introduced as part of COVID-19 measures to reduce face-to-face contact and were extended while the Home Office worked to introduce a robust digital solution for checks on UK and Irish nationals. Once Adjusted Right to Rent checks end, where a landlord wants to offer a digital check to those with UK and Irish ID, the landlord will need to be signed up to an IDSP incurring a chargeable service. Alternatively, landlords will be able to offer manual, face-to-face checks where the applicant offers eligible UK or Irish ID. Where landlords do choose to utilise an IDSP, they must make allowance for British and Irish nationals who choose for their identity to be verified offline and must not discriminate on this basis.
Digital checks on overseas nationals can be conducted simply and without incurring external costs using a digital share code and date of birth provided by the applicant and checked via the real-time Home Office system.
Follow up Right to Rent checks remain as important as ever
If landlords have been unable to obtain the repeat Right to Rent check for an overseas national during a tenancy, the Home Office should be notified in order that the landlord establishes a ‘Statutory Excuse’ which will provide the legal audit trail against any overstayer and/or a civil penalty.
Note – the date on which adjusted Right to Rent checks ends may be pushed back – it has been before! If there are any changes to this date – we will keep members informed.
Article Abridged from Propertmark
For in depth Right to Rent Guides and information, see the gov.uk website;
Landlord’s guide to right to rent checks
Check your tenant’s right to rent
Monthly direct debit users. Will see the grant paid automatically by your supplier – either refunded straight into your bank account, or in the form of a direct debit reduction.
Standard credit customers. This includes those who pay by cash, card or cheque after receiving a monthly or quarterly bill. You’ll get the payment automatically – all suppliers will pay this in the first week of each month between October 2022 and March 2023. It’ll typically be added as credit to your energy account.
Smart prepayment meter customers. You’ll get the grant automatically as credit applied directly to your meter in the first week of each month. However, one concern is that credit is typically paid towards your electricity use, not your gas. Bulb, for example, is making the credit transferable, but we want more suppliers to follow suit and it’s an issue we’ll push on.
Traditional prepayment meter customers. Ensure your supplier has up-to-date contact details for you as your money will be sent as six separate vouchers via text, email or post – which you’ll need to redeem by topping up as normal in a shop or post office. You’ll have three months to redeem each voucher – and if you lose them or they expire, they can only be reissued up until 31 March 2023.
Article Abridged by MSE
Article By GoSimpleTax
Going into business with a partner or partners can offer many benefits. You can gain from other people’s talent, ideas, knowledge, skill, contacts and cash, just as they can gain from yours. You can also share the workload, risk and responsibilities, while avoiding feelings of isolation that can happen when running a business on your own.
The UK has some 384,000 ordinary business partnerships, which is about 7% of the total business population. And whether it’s friends, family, partners, spouses or colleagues, many people continue to start and run a business with partners.
Moreover, in recent years, more people are forming partnerships with others to buy and rent out properties they own as private landlords. There can certainly be many advantages to this, whether that’s linked to tax or simply sharing responsibility and risk.
Members of ordinary business partnerships and those who rent out property through a partnership report taxable income via the SA800 Partnerships Tax Return.
In this guide we explain:
What the SA800 is.
What is an “SA800”?
An SA800 Partnership Tax Return (usually shortened to “Partnership Tax Return”) is the tax return that members of ordinary partnerships must complete and file to tell HMRC about the partnership’s income and “disposals of chargeable assets” (ie selling an asset).
As explained by HMRC in its guidance notes: “Every partnership gets the first eight pages of the Partnership Tax Return covering income from trades and professions, and interest or alternative finance receipts from banks, building societies or deposit takers. There are other ‘supplementary’ pages covering the less common types of income and disposals of chargeable assets.”
Need to know! In addition to the main SA800 tax return, each partner must also file a personal tax return (SA100) and the SA104 supplementary pages to declare their share of any profit or loss. Submitting the SA100 and the SA104 determines how much tax, if any, individual partners must pay. Often this gets missed and results in partners being fined by HMRC. A separate page must be completed for each partnership someone belongs to.
How to register a business partnership
You must register your partnership for Self Assessment with HMRC if you’re the ‘nominated partner’ (the partner responsible for tax and filing the partnership tax return).
You must register before 5 October in your business partnership’s second tax year, otherwise there could be a penalty to pay. The other partners must register themselves separately as a partner. You won’t be able to file an SA800 Partnership Tax Return or a tax return for yourself unless you’re registered.
SA800 Partnership Tax Return supplementary pages
Some types of income are taxed differently when earned through a partnership, for example, rental income or income earned from outside of the UK. You must tell HMRC about these in the SA800 and then provide details in supplementary pages. Such sources of income and the supplementary pages used to report them include:
You use supplementary pages SA800(PS) to declare earnings from sources that aren’t trading/professional income.
You use supplementary pages SA800(TP) to record income from more than one trade or profession on your SA800 Partnership Tax Return.
You use supplementary pages SA801 to record UK property income on your SA800 Partnership Tax Return.
You use supplementary pages SA802 to complete your SA800 Partnership Tax Return if your partnership generated income from outside of the UK.
You use supplementary pages SA803 to complete your SA800 Partnership Tax Return if your partnership “disposed of any chargeable assets” (eg stocks, shares, land and buildings, business assets such as goodwill, etc).
You use supplementary pages SA804 to record savings, investments and other income on your SA800 Partnership Tax Return.
Responsibility for filling out and filing an SA800
By law, the partner nominated by the other partnership members must complete the SA800 Partnership Tax Return and either send it by post to HMRC or file it online using commercial filing software.
The nominated partner is usually chosen when the partnership is set up, but HMRC can choose someone if no one has been selected. If an SA800 Partnership Tax Return has been issued by HMRC in the name of a specific partner, they’re required by law to complete and file it.
Need to know! When reporting profit or loss, the split must accord with the terms of the partnership agreement. In most cases the share is the same for each partner, although it’s not always the case.
How to file your SA800 Partnership Tax Return
SA800 Partnership Tax Return filing deadlines
SA800 Partnership Tax Return late-filing penalties
If you don’t file your SA800 Partnership Tax Return before the paper or online deadline, whichever one you choose, each member of the partnership during the tax return period must pay a £100 penalty, unless you have a valid reason for being late.
If the partners still fail to file their SA800, each partner will be charged:
Need to know! You must complete the Partnership Tax Return in full. If you have a disability that makes filling in the return difficult HMRC can help you complete the form.
What happens after HMRC receives your SA800?
After receiving it, HMRC will process your Partnership Tax Return using the figures you have entered. If there are any obvious mistakes, HMRC will correct them and let you know. HMRC may also contact you if it has any queries over the figures you’ve entered.
HMRC has 12 months from the date of filing to check your SA800 Partnership Tax Return and any supplementary pages. It can ask you to provide accounting figures from which you took the figures you entered in the tax return. These can also be checked against your bank account figures.
All partnership members are responsible for the accuracy of their SA800 Partnership Tax Return. The partnership should retain records of all its business transactions. You must keep these for at least six years and show them to HMRC on request.
SA800: tax payment deadlines
The deadlines for paying your tax bill are:
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.
You’ll need to know 3 things:
You may be able to get Council Tax Reduction (this used to be called Council Tax Benefit) if you’re on a low income or get benefits.
You can challenge your Council Tax band if you think your home is in the wrong valuation band.
Your property may be put in a different band in some circumstances, for example if:
Ask the Valuation Office Agency (VOA) if you want to know if changes to your property will affect your Council Tax band.
You’ll usually have to pay Council Tax if you’re 18 or over.
A full Council Tax bill is based on at least 2 adults living in a home. Spouses and partners who live together are jointly responsible for paying the bill.
Some people are not counted (‘disregarded’) when working out how many people live in a property. This means you might be able to apply for a discount on your Council Tax bill if you get one.
You’re disregarded if you’re:
You need to apply for a Council Tax discount or an exemption, even if you’re disregarded.
You’ll get 50% off your bill if everyone living in your household is disregarded.
You’ll get 25% off your bill if you pay Council Tax and either:
Contact your local council if you’re unsure about whether you can get a discount or who’s responsible for paying.
To show that you do not qualify as an adult for Council Tax, you’ll need a declaration from your employer stating that:
You must contact your local council. If you do not, you could get a fine.
The council may ask you to pay back the discount.
Households where everyone’s a full-time student do not have to pay Council Tax. If you do get a bill, you can apply for an exemption.
To count as a full-time student, your course must:
If you study for a qualification up to A level and you’re under 20, your course must:
You’ll get a Council Tax bill if there’s someone in your household who’s not a full-time student, but your household might still qualify for a discount.
You might be able to apply for a Council Tax discount or exemption if you or someone you live with is disabled.
You may be eligible for the scheme if you live in a larger property than you would need if you or another occupant were not disabled.
If you qualify, your bill will be reduced to the next lowest Council Tax band. For example, if your property is in Band D, you’ll pay the Band C rate. If your home is already in the lowest band (Band A), you’ll get a 17% discount on your Council Tax bill instead.
You’ll have to show that you have either:
The property must be the main home of at least 1 disabled person. This can be an adult or a child – it does not have to be the person responsible for paying the Council Tax.
Check if you qualify for the Disabled Band Reduction Scheme.
You might be able to apply for a discount on your Council Tax bill if you or someone you live with is severely mentally impaired.
You’ll need to:
You’ll get a 100% discount if you qualify as severely mentally impaired and one of the following applies:
There’ll be a 50% discount on the council tax bill if everyone else in your household is ‘disregarded’.
You’ll get a 25% discount if you live with someone who qualifies as severely mentally impaired and either:
You’ll usually have to pay Council Tax on a property you own or rent that’s not your main home, such as holiday homes.
Your council can decide to give you a discount – it’s up to them how much you can get. Contact your council to ask about a discount.
You’ll usually have to pay Council Tax on an empty home, but your council can decide to give you a discount – the amount is up to them. Contact your council to ask about a discount.
You can be charged an extra amount of Council Tax (a ‘premium’) if your home has been empty for 2 years or more.
How much you pay will depend on how long the property has been empty. You can be charged up to 4 times your normal Council Tax bill if your home has been empty for 10 years or more.
You will not have to pay the empty home premium if either:
The rules are different in Scotland.
If you’re selling a property on behalf of an owner who’s died, you do not need to pay Council Tax until after you get probate as long as the property remains empty. After probate is granted, you may be able to get a Council Tax exemption for another 6 months if the property is both:
Some homes do not get a Council Tax bill for as long as they stay empty. They include homes:
You may get a discount if your home is undergoing major repair work or structural changes, for example your walls are being rebuilt.
Your council will tell you when you have to start paying Council Tax if you’ve been carrying out major home improvements on an empty property or building a new property.
You’ll get a ‘completion notice’ that tells you the date you must start paying Council Tax.
Your property’s only considered derelict if it:
You can challenge your Council Tax band if you think a derelict property should be removed from the Council Tax valuation list.
Your Council Tax bill tells you:
The cost is usually split into 10 monthly payments. Contact your local council immediately if you’re having trouble paying – they can help you, for example by spreading your payments over 12 months instead of 10.
The council can take action to reclaim any debts you owe if you get behind with your payments.
You can usually pay your Council Tax online.
You can also use ‘Paypoint’, ‘Payzone’ or ‘Quickcards’ for cash payments at post offices, banks, newsagents and convenience stores.
Check your bill to find out which other payment methods you can use.
Contact your local council if you’ve paid too much Council Tax and have not received an automatic refund.
Local councils in England are paying £150 to households in Council Tax band A to D.
Most people have now been paid.
You get £150 per household if you paid Council Tax on your main home on 1 April 2022 and it’s in Council Tax band A, B, C or D. Check your Council Tax band.
Some households who do not have to pay Council Tax can still get the £150. This includes:
If you receive Council Tax Reduction (sometimes called Local Council Tax Support) or a Council Tax discount, you will also get the rebate.
Councils started making payments in April 2022 and will be paying the rebate until 30 September 2022.
If you pay by Direct Debit, most councils will pay the £150 directly into your bank account.
If you do not pay your Council Tax bill by Direct Debit, you may need to make a claim. If you have not been told how to do this, contact your local council.
Some councils will credit your Council Tax account or give you vouchers.
Help with Council Tax payments is also available in Northern Ireland, Scotland and Wales. Contact your local council or check their website for more information.
Your local council may be able to give you more money, even if you’ve already been paid the £150. Contact your local council for more information.
For more information see; How Council Tax works: Working out your Council Tax – GOV.UK (www.gov.uk)
On 16 June 2022, the Government published A fairer private rented sector – a landmark white paper for the private rented sector – which sets out this government’s commitment to introduce a legally binding Decent Homes Standard to the private rented sector for the first time.
This will improve parity with the social rented sector where there has been a decent homes standard in place since 2001. The system will also be fairer for good landlords by making sure those who do not treat their tenants fairly are no longer able to get away with it, tarnishing the reputation of the sector as a whole.
The Government have undertaken a range of stakeholder engagement in the last 3 months, running a number of in-depth discussions with key organisations on how we apply a Decent Homes Standard to the private rented sector. This consultation builds on that engagement and seeks further views on how to apply and enforce the standard in the private rented sector where it is not already being met. We encourage members to send their views and feedback on the proposals and questions contained in this consultation.
For further information see; A Decent Homes Standard in the private rented sector: consultation – GOV.UK (www.gov.uk)
Tuesday 4th October 2022 – 1:30pm – 4:30pm
Venue – Online
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 –
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.
Private Renting Team leaflet lease offer
We encourage all members to contribute to the call for evidence. Read the White Paper and have your say before it’s too late!
The White Paper; https://www.gov.uk/government/publications/a-fairer-private-rented-sector
Respond to the enquiry; https://committees.parliament.uk/work/6862/
Thursday 10th November 2022 – 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 1100 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.
Article By GoSimpleTax
With prices across the board rising faster than they have for decades, many of us are watching the pennies more carefully, tightening our belts and looking for ways to cut costs.
That includes the UK’s 2.6m private landlords, many of whom can’t put up the rent they charge because tenants’ wages aren’t increasing anywhere near in line with inflation. For many UK private landlords, finding ways to reduce costs is the only way to protect their rental incomes.
If you’re one of the UK’s private landlords, don’t rule out anything when seeking to reduce your costs – and that includes tax. It could well be possible to reduce your tax costs, possibly in ways you hadn’t yet considered. So, how might you be able to reduce your tax costs?
1 Claim all of your allowable expenses
An obvious place to start. Fortunately, many products and services you need to buy to rent out your property can be claimed as “allowable expenses”, which you deduct from your profits to help minimise your yearly tax bills.
Allowable expenses for landlords include general property maintenance and repairs (but not improvements), water rates, council tax, possibly gas and electricity, insurance, gardening and cleaning services, letting agent/management fees, legal fees for lets of a year or less, accountancy fees, rent (if you’re sub-letting), ground rents and service charges, advertising when looking for new tenants, stationery, property rental-related phone calls and mileage.
You’re probably already claiming for many allowable expenses, but you may not be claiming for all of them. Visit government website GOV.uk to find out more about allowable expenses you can claim.
Poor expense management can also mean you’re not claiming for all of your deductible expenses. Be sure to record all of your expenses and retain receipts and invoices, so that you don’t forget to claim any. Many apps and software allow you to use your smartphone to photograph, store and record receipts, which ensure that you never miss any out.
2 Claim for home office expenses
You can claim allowable expenses for operating a small office in your home to take care of business admin relating to renting out your property. Many private landlords do it. Based on how much time you use your home office, you claim for a share of total costs for your rent or mortgage interest payments, water rates, domestic heating and lighting, broadband and phone calls. Stationery and office furniture can also be claimed as an allowable expense.
3 Claim for other allowances and reliefs
You can claim the property allowance, which is a tax allowance worth £1,000 a year. If you claim the property allowance, you can’t claim for allowable expenses, but if you have few allowable expenses and the mortgage is paid, the property allowance can be worth claiming. If you own the property with your partner or spouse and split the profits, you can both claim the property allowance.
Landlords can’t claim the costs of replacing furnishings or equipment in a furnished or part-furnished rental property as an allowable expense, but they may qualify for full Replacement Domestic Items relief for replacing sofas, beds, carpets, curtains, fridges, washing machines, sofas, crockery, cutlery, etc, as long as the quality is comparable, not superior. Such replacements should not come out of your own home or pocket.
4 Claim for void periods
The extreme disruption caused by the pandemic meant that some landlords were left with empty rental properties for many months. If you were among them and you still had to pay expenses such as electricity, gas, water and council tax, make sure you claim for these expenses if you haven’t already.
And like many other UK landlords, you may have made significant losses in recent years as a result of the pandemic. These losses can, of course, be carried forward and claimed against subsequent years when you have made a profit. If you own more than one property, expenses for one property can be offset against income from another.
5 Transfer ownership into a limited company
You need to carefully crunch the numbers to find out which option is best for you. Transferring ownership of your property into a limited company can be more tax-efficient, but you need to factor in all other costs, such as accountancy fees, which can be higher because more tax admin is required. More importantly, you also need to consider stamp duty and capital gains tax if you sell property to a limited company that you set up.
If the company needs to take out a commercial mortgage, it’s likely to be more expensive, too. You also need to consider the tax implications if you later sell the property. If you own one or two rental properties, transferring ownership to a limited company probably isn’t worthwhile. But if you have a portfolio of more rental properties, transferring ownership to a limited company could prove much more tax-efficient.
6 Do your own Self Assessment tax returns
For a variety of reasons, you may be paying an accountant to do your bookkeeping and/or take care of your annual Self Assessment tax return. This can cost between £200 and £400 a year, plus VAT. Cheaper deals are available, but you get a very basic service, normally with no tax advice.
If things are really tight, you could save that money by maintaining your own accounts and completing your own Self Assessment tax return. If you’ve not done it before, it will involve some research and learning, but it may be possible to complete your Self Assessment tax return in less time than you think. Reportedly, it takes just 2.5 hours on average.
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.
Available on desktop or mobile applications.
Torbay Council urgently needs properties for a variety of local families, couples and single people looking for permanent homes.
Torbay is in the midst of a housing crisis: there aren’t enough homes for people in need of one or those who are homeless or at risk of homelessness.
Many landlords in the Bay have properties available for rent – and the council is asking them to come forward and give people a secure home.
It needs everything from rooms in shared houses to six-bed family homes.
Whether you’re a new landlord or have been doing it for years, the council understands every landlord is different, so its dedicated point of contact will work with you to find the right tenancy for your needs.
There are great benefits for landlords, including:
If you’re a landlord or a letting agent, contact Torbay Council today to find out what it can offer you. Visit its landlord page for more details.
The Smoke and Carbon Monoxide Alarm (England) Regulations 2015 came into force on 1 October 2015.
The Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022 will come into force on 1 October 2022. From that date, all relevant landlords must:
1. Ensure at least one smoke alarm is equipped on each storey of their homes where there is a room used as living accommodation. This has been a legal requirement in the private rented sector since 2015.
2. Ensure a carbon monoxide alarm is equipped in any room used as living accommodation which contains a fixed combustion appliance (excluding gas cookers).
3. Ensure smoke alarms and carbon monoxide alarms are repaired or replaced once informed and found that they are faulty.
The requirements are enforced by local authorities who can impose a fine of up to £5,000 where a landlord fails to comply with a remedial notice.
The regulations do not stipulate the type of alarms (such as mains powered (‘hard-wired’) or battery powered) that should be installed.
We recommend that landlords choose the type of smoke alarms based on the needs of their building and their tenants, and that those alarms are compliant with British Standards BS 5839-6. Where battery powered alarms are selected, alarms with ‘sealed for life’ batteries rather than alarms with replaceable batteries are the better option.
The regulations do not stipulate the type of alarms (such as mains powered (‘hard wired’) or battery powered) that should be installed.
Landlords should make an informed decision and choose the type of carbon monoxide alarms based on the needs of their building and their tenants, and that those alarms are compliant with British Standards BS 50291. Where battery powered alarms are selected, alarms with ‘sealed for life’ batteries rather than alarms with replaceable batteries are the better option.
The regulations do not stipulate where the alarms should be placed.
At least one smoke alarm should be installed on every storey which is used as living accommodation.
Landlords should follow the individual manufacturer’s instructions when installing the alarms. However, in general, smoke alarms should be fixed to the ceiling in a circulation space, i.e. a hall or a landing.
Your local fire and rescue authority may be able to provide further advice on installation or you can download fire safety information from www.gov.uk/firekills
The regulations do not stipulate where the alarms should be placed.
A carbon monoxide alarm should be installed in every room which is used as living accommodation containing a fixed combustion appliance (excluding gas cookers).
Landlords should follow the individual manufacturer’s instructions when installing the alarms. However, in general, carbon monoxide alarms should be positioned at head height, either on a wall or shelf, approximately 1-3 metres away from a potential source of carbon monoxide.
Your local fire and rescue authority may be able to provide further advice on installation or you can download fire safety information from www.gov.uk/firekills.
Landlords will be responsible for repairing or replacing any faulty alarms.
If tenants find that their alarms are not in working order during the tenancy, they are advised to arrange for the replacement of the batteries.
If the alarm still does not work after replacing the batteries, or if tenants are unable to replace the batteries themselves, they should report this to the relevant landlord.
Testing of smoke alarms and carbon monoxide alarms does not require specialist skills or knowledge and should be straightforward for tenants to do.
Landlords should consider providing residents with a demonstration and/or instructions to support resident understanding of how, and how often, to test their smoke alarms and make sure they are in working order. Landlords should follow the individual manufacturer’s instructions for testing alarms and consider sharing these instructions with tenants to support regular testing.
If tenants find that their alarms are not in working order during the tenancy, they are advised to arrange for the replacement of the batteries.
If the alarm still does not work after replacing the batteries, or if tenants are unable to replace the batteries themselves, they should report this to the relevant landlord.
Landlords should make an informed decision and choose the best alarms for their properties and tenants, with due regard for their residents’ circumstances.
For example, specialist smoke alarms and carbon monoxide alarms that alert by vibration or flashing lights (as opposed to by sound alerts) may be required for residents who are deaf or hard of hearing.
Landlords should/must consider their duties under the Equality Act 2010.
Heat detectors are not a replacement for smoke alarms.
The regulations require landlords to ensure alarms are equipped, and to check that each prescribed alarm is in proper working order on the day the tenancy begins if it is a new tenancy.
Landlords should make sure alarms are installed in an effective way to protect tenants from the dangers of smoke and carbon monoxide.
Your local fire and rescue authority may be able to provide further advice on installation or you can download fire safety information from www.gov.uk/firekills.
The regulations apply to all homes rented by private landlords or registered providers of social housing, unless excluded.
Excluded tenancies are detailed in the regulations.
The regulations apply to all social and private rented tenancies, other than those explicitly excluded in the Schedule to the Regulations.
The following tenancies are excluded from the regulations:
If the occupier shares the accommodation with the private landlord or the private landlord’s family, then these regulations will not apply.
For the purposes of the regulations, a private landlord is considered to share accommodation with the tenant if they share an amenity such as a kitchen or living room. The regulations are not aimed at owner-occupied properties.
The regulations apply to unlicensed HMOs. Licensed HMOs are exempt from Parts 1 to 5 of the regulations but only because the regulations also amend the HMO licensing obligations in the Housing Act 2004 so as to impose similar requirements.
These regulations do not apply to owner occupiers.
These regulations do not apply to owner occupiers living in shared-ownership homes.
The regulations will be enforced by local housing authorities. Details on enforcement of the regulations can be found in the guidance for local authorities
If landlords are made aware that they are not compliant with the regulations, they should undertake remedial action to install alarms as soon as practicable. Private registered providers of social housing are expected to self-refer to the Regulator of Social Housing whilst they remain non-compliant on the basis of failing to meet their statutory duties.
The Regulator of Social Housing requires social landlords to ensure that all their homes meet the Decent Homes Standard and continue to maintain their homes to at least this standard. Social landlords are also required to meet all applicable statutory requirements that provide for the health and safety of the occupants in their homes.
If private registered providers of social housing are aware that they are non-compliant with these requirements, or any of the regulatory standards, they are expected to self-refer to the Regulator of Social Housing.
Although local authority landlords cannot take enforcement action against themselves in respect of their own stock, they will be expected to ensure their housing is safe and they will be subject to these legislative requirements. As public authorities, local authorities can be challenged by way of judicial review.
Local authority landlords are obliged to comply with the regulatory regime overseen by the Regulator of Social Housing.
The regulations require checks to be made by or on behalf of the landlord to ensure that each prescribed alarm is in proper working order on the day the tenancy begins if it is a new tenancy.
It is the responsibility of landlords to keep a record of when alarms are tested.
The local housing authority must decide whether the evidence provided proves that the landlord has met the requirements of the regulations.
One possible means, if the landlord goes through the inventory on the first day of the tenancy, is that the landlord makes provision for the tenant to sign the inventory to record that the required alarms have been tested by the landlord and the tenant is satisfied they are in working order.
Where a landlord is in breach, the local housing authority may serve a remedial notice. Failure to comply with each remedial notice can lead to a fine of up to £5,000. Fines will be applied per breach, rather than per landlord or property.
Landlords have the right to appeal to the First-tier Tribunal against the penalty charge notice. Further details on appeals can be found in the guidance for local authorities.
We know that getting access to do repairs and maintenance work can sometimes be difficult for landlords.
The existing regulations are clear that landlords must take all reasonable steps to comply with a remedial notice but are not expected to go to court to gain access in order to be compliant. Landlords should be able to demonstrate that they have taken all reasonable steps to comply to Local Authorities.
For example, landlords should write to their tenants to explain that it is a legal requirement to install the alarms and that it is for the tenant’s own safety. Landlords should try to arrange a time to visit that is convenient for the tenant, and keep a written record of access attempts to provide to the local housing authority if required.
Landlords should attempt to understand why tenants cannot or will not provide access and work with them to find a solution
The existing regulations are clear that landlords must take all reasonable steps to comply with a remedial notice but are not expected to go to court to gain access in order to be compliant. Landlords should be able to demonstrate that they have taken all reasonable steps to comply to local authorities.
For example landlords should write to their tenants to explain that it is a legal requirement to install the alarms and that it is for the tenant’s own safety. Landlords should try to arrange a time to visit that is convenient for the tenant, and keep a written record of access attempts to provide to the local housing authority if required.
All landlords (whether social or private) have time between when the amendment regulations became law on 27 June 2022 and when they come into force on 1 October 2022. Landlords must comply with the new requirements from 1 October 2022.
The new requirements come into force on 1 October 2022. Landlords are expected to be compliant with the regulations from that date.
https://www.trade-point.co.uk/
Article by GoSimpleTax
The UK is facing a serious cost-of-living crisis. It’s being driven by eye-watering utility bill increases, rocketing fuel pump prices and record inflation that’s making the weekly supermarket shop and other purchases far more expensive. Moreover, interest rates are increasing, with more hikes expected, while take-home pay isn’t increasing anywhere near in line with inflation.
Many people are already having to cut back to get by, and that includes the nation’s 3.5m sole traders, the unsung heroes of the economy who make up 59% of the total UK business population (5.9m), as well as the 405,000 people (7%) who run ordinary business partnerships.
Caution is advised when cutting costs, because if you cut them too much or in the wrong places, it can damage your sole trader business. But sole traders can potentially make savings in most if not all areas – and that includes tax. That doesn’t mean doing anything illegal, of course, but just finding ways to minimise your tax bill and limit your tax-management costs. So, how might you save money on tax when you’re self employed?
1 Claim all of your allowable expenses
If you’ve been running your sole trader business for some years, you’ve probably already claimed allowable expenses via your Self Assessment tax returns. These are costs generated “wholly and exclusively” to operate your sole trader business. You deduct these from your income so that you’re taxed solely on your profits.
Do some research to find out whether you’re claiming all of your allowable expenses. Government website GOV.UK is a great starting point to find out more about allowable expenses.
How might you be missing out? If you run your sole trader business from commercial premises or supply services at your customers’ homes, you can claim allowable expenses for operating a small home office for after-hours admin work. Make sure you also claim for all eligible business mileage costs. You might be paying for things which could be claimed as an allowable business expense. Even small expenses such as postage stamps or a daily pint of milk mount up over the year.
2 Make Marriage Allowance work for you
You’re probably already claiming your Personal Allowance of £12,570 a year, which is tax-free income you can earn if your net income is below £100,000. But if you’re married or in a civil partnership, find out about Marriage Allowance. It could reduce how much tax you or your partner pays if you or they are a basic rate Income Tax payer (ie income of £12,571-£50,270 – 2022/23 tax year).
The Marriage Allowance enables a partner who is earning below £12,570 a year to transfer 10% of their Personal Allowance to their higher-earning partner, which equals £1,260 and offers a potential tax saving of up to £252 a year.
3 Lower your “payments on account”
Most self-employed people pay their Income Tax in two advance payments, one in January and the other in July, with payments based on the previous year’s tax bill. However, if your earnings for this tax year will be lower, you can reduce your payments via your Government Gateway online account or by sending a completed SA303 form to HMRC. Otherwise, you’ll pay more and have to wait for a refund from HMRC.
4 Get tax relief on your pension contributions
Private pension contributions paid into HMRC-registered private pension schemes are tax-free up to set limits. You’ll only pay tax if the value of your pension pot goes above 100% of your earnings in a year or is more than £40,000 a year.
As explained on the government’s Money Helper website: “If you’re a basic-rate taxpayer, the government will add an extra £25 for every £100 you pay into your pension. If you pay enough tax at the higher rate of 40% in England, Wales or Northern Ireland, you can claim back a further £25 through your tax return for every £100 you pay into your pension. In Scotland, you can claim an extra £1.58 for every £100 paid if you pay enough tax at the Scottish Intermediate Rate of 21% [and] a further £26.58 if you pay enough tax at the Scottish Higher Rate of 41%.”
5 Donate to a charity
They’re not only a great way to make a positive difference, but donations to charities or community amateur sports clubs are also subject to tax relief. Donations made through Gift Aid enable charities to claim an extra 25p for every £1 you give, as long as you make a declaration vis a Gift Aid form. Donations will qualify and long as they’re not more than four times what you’ve paid in Income Tax or Capital Gains in that tax year. If you pay tax above the basic rate of Income Tax, via Self Assessment, you can claim the difference between the rate you pay and basic rate on your donation.
6 Claim for previous tax return mistakes or trade losses
If you’ve made mistakes in tax returns in the past four years, for example, by not claiming for all of your allowable expenses, you may be able to claim a refund for overpaid tax. You write to HMRC to tell them you want to claim overpayment relief. You must include proof that you’ve overpaid tax through Self Assessment and sign a declaration confirming the accuracy of the new details you’ve provided. Obviously, you must not wilfully make invalid claims.
Covid meant that many sole traders made a loss in recent years, with some unable to claim government support. If you’re among them and you haven’t already done so, you may be able to offset a loss against profits made in subsequent years, which will reduce your next tax bill.
7 Do your own Self Assessment tax return
If you’re currently paying an accountant to complete your Self Assessment tax return, doing it yourself could save you a few quid. For a lower price (£50 or so), software can make completing your own Self Assessment tax return cheaper, quicker and easier, with the software providing prompts to help you enter the right figures in the right place. Such software also comes with customer support.
Other ways to save money and pay less tax
Transferring ownership of assets to your spouse or civil partner can shield you from Capital Gains Tax. You do not pay Capital Gains Tax on assets you give or sell to your spouse or civil partner, providing you live together and their business doesn’t sell them. They may have to pay tax on any gain if they later dispose of the asset.
You may also benefit on savings and investments. The Starting Rate for Savings supports savers on the lowest incomes, as you don’t pay tax on up to £5,000 of interest from savings. The Personal Savings Allowance also enables tax-free earnings. Basic rate taxpayers get a £1,000 tax-free allowance, while higher rate taxpayers get £500 (additional rate taxpayers get nothing). Tax-free ISAs (Individual Savings Accounts) could be another option.
If you rent out a spare, furnished room in your home, the Rent-a-Room Scheme enables you to earn up to £7,500 a year in tax-free rent. And under the Tax-Free Childcare scheme, parents can claim back 25% of their childcare costs up to £500 every three months, as long as they earn less than £100,000 a year and the child is under 11. You’ll need to set up an online childcare account, then for every £8 you pay in, the government will pay in £2 that you can use to pay your childcare provider. You can get Tax-Free Childcare and 30 hours free childcare if you’re eligible for both.
A penny saved…
Finding ways to save on tax can take effort, but the results make it worthwhile, with every penny saved a penny earned. Lowering your costs wherever possible increases the chances that you and your sole trader business will weather the current financial storm and come out stronger on the other side.
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.
Available on desktop or mobile application.
The SDRP will be a new statutory debt solution focussed on repayment of debt, rather than debt relief, addressing a gap in the debt solution landscape. The SDRP will include a broad range of debts, including debts owed to the government and to creditors outside of financial services and will protect debtors from enforcement action, creditor contact, and interest, fees and charges on their debts while they repay them.
The government consulted on aspects of the SDRP in 2018/19, and published a response to that consultation in June 2019, setting out a basic blueprint for the scheme.
This consultation on the SDRP sets out the policy development that has taken place since 2019. It seeks stakeholder views on three broad areas:
Full article from gov.uk; https://www.gov.uk/government/consultations/statutory-debt-repayment-plan-consultation
Wednesday 3rd August 2022 – 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 1100 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.
