Signup to the SWLA
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)
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/
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
**PLEASE NOTE – THIS IS NOT AN SWLA WEBINAR – PLEASE SIGN UP BY CLICKING THE LINK BELOW IF YOU WISH TO ATTEND** Martyn Taylor of Ashley Taylors Legal invites all SWLA members to the following free landlord webinar; When – 10.30am Tuesday 5th July 2022 Subject– Landlord and Tenant reforms – The White Paper Where– Zoom An introduction and overview of the changes and new grounds for possession coming up in the forthcoming new legislation intended to “level up” the PRS for tenants. It will last last the normal 35 minutes with hard hitting facts and things you need to know, prepare for and act upon in the letting industry. If you would like to sign up, please click the following registration link to register in advance; https://us02web.zoom.us/webinar/register/WN_Z15legn0QNC_GS2KXyOtWQ After registering, you will receive a confirmation email containing information about joining the webinar. Any questions in advance please email to events@ashleytaylors.co.uk The webinar is limited to 1000 attendees on a first come, first served basis.
Did you know, filing your 21-22 tax return now could reduce your payment on account for July!
Payment on Account is due for many on 31st July 2022.
By now you will have received your brown envelope off HMRC if you are due to make a payment on account on 31st July.
If you earnt less in the period 6th April 2021 to 5th April 2022 than you did in the previous year now is the time to file your return and look to reduce your payment on account this July.
Not sure – do your return now, filing early doesn’t mean paying early.
Information from Go Simple Tax
Proposals have been announced in the ‘Fairer Private Rented Sector’ White Paper, published today (16 June 2022). The Renters Reform Bill will be introduced in this parliamentary session (later in 2022). The proposed reforms go much further than we expected. The White Paper can be read here;
A Fairer Private Rented Sector (publishing.service.gov.uk)
Article from gov.uk;
Fairer private rented sector white paper to ensure improvements to the rights and conditions for millions of renters.
The fairer private rented sector white paper published today (16 June 2022) will ensure millions of families benefit from living in decent, well looked-after homes as part of the biggest shake up of the private rented sector in 30 years.
The white paper marks a generational shift that will redress the balance between landlords and 4.4 million private rented tenants. It provides new support for cost of living pressures with protections for the most vulnerable, and new measures to tackle arbitrary and unfair rent increases. This is part of a wider reform agenda to improve lives and level up the country, delivering more housing and greater protections for tenants and homeowners.
The majority of tenants enjoy safe and secure rentals, but for the 21% of private renter and households who currently live in unfit homes, this ‘New Deal’ will extend the Decent Homes Standard to the private sector for the first time, levelling up opportunities. This means homes must be free from serious health and safety hazards, and landlords must keep homes in a good state of repair so renters have clean, appropriate and useable facilities.
So-called ‘no fault’ section 21 evictions – that allow landlords to terminate tenancies without giving any reason – will be outlawed. More than a fifth of private renters who moved in 2019 and 2020 did not end their tenancy by choice, including 8% who were asked to leave by their landlord.
Measures published today also include:
In addition, the estimated 2.3 million private landlords will have greater clarity and support through the following measures:
These reforms will help to ease the cost of living pressures renters are facing, saving families from unnecessarily moving from one privately rented home to another hundreds of pounds in moving costs.
We have already taken significant action over the past decade to improve private renting, including reducing the proportion of non-decent private rented homes from 37% to 21%, capping tenancy deposits and banning tenancy fees for tenancy agreements signed after 1 June 2019, and introducing pandemic emergency measures to ban bailiff evictions.
Today’s measures will form part of the Renters Reform Bill as announced in the Queen’s Speech, to be introduced in this parliamentary session. This will deliver on our commitment to give renters a better deal and make the private rented sector fit for the 21st century with safer, more secure and higher quality homes.
Levelling Up and Housing Secretary Michael Gove said:
For too long many private renters have been at the mercy of unscrupulous landlords who fail to repair homes and let families live in damp, unsafe and cold properties, with the threat of unfair ‘no fault’ evictions orders hanging over them.
Our New Deal for renters will help to end this injustice by improving the rights and conditions for millions of renters as we level up across the country and deliver on the people’s priorities.
While the majority of private rented homes are of good quality, offering safe, comfortable accommodation for families, the conditions of more than half a million properties – or 12% of households – pose an imminent risk to tenants’ health and safety, meaning around 1.6 million people are living in dangerously low-quality homes, driving up costs for our health service.
The sector offers the most expensive, least secure, and lowest quality housing to millions of renters, including 1.3 million households with children and 382,000 households over 65. Rents are also rising at their fastest level for 5 years. This can damage life chances and hold back some of the most deprived parts of the country.
Today’s move marks the latest phase in delivering on the government’s levelling up missions, taking serious steps to halve the number of poor-quality rented homes, across both private and social tenures, by 2030.
Last week the government introduced the Social Housing Regulation Bill which means failing social housing landlords could face unlimited fines and Ofsted-style inspections.
In a major reset of power between tenants and landlords, residents will be able to demand information and rate their landlord as part of new satisfaction measures. Taken together with today’s renters reform white paper, the Bill will form a key part of the government’s mission to level up across the country and deliver on the people’s priorities.
Original article; New deal for private renters published today – GOV.UK (www.gov.uk)
Further articles of interest;
White Paper claims a fairer deal for the PRS | Propertymark
The Agent Blog – Goodlord | Fairer Private Rented Sector White Paper
Accountancy firm PKF Francis Clark is looking for properties in the South West region that are suitable for wheelchair users.
The firm is a proud business sponsor of the Government’s Homes for Ukraine scheme and is working with a charity, SMA Poland, helping those with Spinal Muscular Atrophy.
There are at least four families looking to relocate to the UK, but the biggest challenge is finding suitable homes. The firm will be supporting them financially, (although the families can access benefits) and can act as a guarantor for the tenancy.
If you have a suitable property or if you have any queries, please contact Alix Reynolds or Mandy Reynolds at PKF Francis Clark on 01392 667000.
Failing social housing landlords could face unlimited fines and Ofsted-style inspections, under the Social Housing Regulation Bill set to be introduced to Parliament. The move will mean more people living in good quality, well looked-after homes.
The Regulator of Social Housing will have stronger powers to issue unlimited fines, enter properties with only 48 hours’ notice (down from 28 days) and make emergency repairs where there is a serious risk to tenants, with landlords footing the bill.
In a major reset of power between tenants and landlords, residents will be able to demand information and rate their landlord as part of new satisfaction measures. The Bill will form a key part of the government’s mission to level up across the country and deliver on the people’s priorities.
Tenants will have a direct line to government, with a new 250-person residents panel convening every 4 months to share their experiences with ministers, inform policy thinking and help drive change in the sector.
The Bill is the latest step in addressing the systemic issues identified following the Grenfell Tower tragedy, not just on the safety and quality of social housing, but about how some tenants are treated by their landlords.
Levelling Up Secretary Michael Gove said: “In 2022 it is disgraceful that anyone should live in damp, cold and unsafe homes, waiting months for repairs and being routinely ignored by their landlord. These new laws will end this injustice and ensure the regulator has strong new powers to take on rogue social landlords. We are driving up the standards of social housing and giving residents a voice to make sure they get the homes they deserve. That is levelling up in action.”
The biggest social housing providers will face regular inspections and the Levelling Up Secretary will continue to name and shame worst offenders to make sure residents are living in good quality homes.
Earlier this month, the Levelling Up Secretary called out Britain’s biggest social landlord Clarion after the Housing Ombudsman found severe cases of maladministration.
The Bill will also mean landlords will need to have a named person who will be responsible for health and safety requirements. And tenants of housing associations will be able to request information from their landlord, similar to how the Freedom of Information Act works for council housing.
Article Abridged from Property 118
In autumn 2020, the government began a consultation on tightening MEES rules. The proposals are currently just that, and no regulations have even been drafted yet. The consultation closed in January 2021, but the results have not yet been published.
However, the main proposed changes are as follows:
The plan is to enforce this from 1 April 2025 for existing tenancies, and from 1 April 2028 for new tenancies.
The government says this would be sufficient to bring more than 90% of D-rated properties up to a C rating, as well as nearly 60% of E-rated properties. It’s not clear whether existing spending would count towards the new cap.
This would control in which order work is carried out, so improvements to the fabric of the building (ie insulation, windows and doors) must be done before additional measures such as new heating systems are installed.
The exemptions would remain largely unchanged. Additionally, the proposals recommend clarifying the rules for listed buildings and those in conservation areas, and introducing a central database of compliance and exemptions.
Mick Quick of Tech Surveys in Plymouth has recently pre-recorded a Zoom presentation for our members, he talks through the likely changes and what you can do now to prepare. If you would like to view the presentation, please contact the SWLA office and we can send you the link by email.
National Trading Standards Estate and Letting Agency Team (NTSELAT) and the Competition and Markets Authority (CMA), have stated that the use of ‘POA’ or ‘price on application’ in property listings contravenes consumer protection legislation.
NTSELAT’s was asked by the industry to provide a view on the use of POA as part of their ongoing process to improve the disclosure of material information on property listings.
The use of ‘POA’ in relation to a listing on a property portal or an agent’s website is likely to be misleading as it withholds or in some cases masks the asking price from consumers. A property’s price is information which the average consumer needs in order to make an informed transactional decision, i.e. make an enquiry about the property, conduct further research or arrange a viewing.
With support from Propertymark and other industry leaders, NTSELAT has launched a three-phase project which has been developed in response to defining what constitutes material information for property listings.
Also of note, under newly announced rules by the National Trading Standards Estate and Letting Agency Team (NTSELAT), a property’s council tax band or rate, price and tenure (for sales) must now be included on all property listings by the end of May 2022.
Article Abridged from Propertymark
The UK Government Boiler Upgrade Scheme (BUS) is accepting applications in England and Wales for grants for the installation of low carbon heating systems.
Applications from property owners are now being accepted for grants of up to £5,000 off the cost and installation of an air source heat pump or a biomass boiler, and up to £6,000 off the cost and installation of a ground source heat pump are available between now and 2025. The grant is paid directly to the installer and discounted from the price charged.
Landlords and second-home owners are included in the scheme, subject to the other conditions of a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation being met. Grants are not normally available for new build properties (except self-builds).
While the green solutions being promoted may not be suitable in all situations, this is an opportunity for landlords to look at all the options to improve the energy efficiency of their property before becoming mandated to do so. This in turn can reduce bills for tenants and make the property a better proposition to be let out.
These grants represent a way to upgrade with a significant financial contribution from the government.
In the Spring Statement, the UK Government set out their intention to require energy suppliers to improve the energy efficiency of low-income homes, and plan to extend the minimum energy efficiency standards for the private rented sector in England and Wales.
This is linked to the Heat and Buildings Strategy launched in October 2021, and whilst BUS is an initial step to help property owners make homes more energy-efficient it is still unlikely that the energy efficiency targets for the PRS and a reduction in emissions across the property sector will be met.
For more information, see the SWLA newsfeed or visit the gov.uk website.
Article Abridged from Propertymark
Landlords across the UK will be able to apply for 75% of the cost of charging points up to £350 where they own parking areas (but must be VAT registered or registered at Companies House to be eligible).
A related scheme enables tenants to apply for a similar grant on their own behalf. However, where landlords do not meet the registration requirements, tenants can apply themselves for a grant to have a charging point installed.
The chargepoint grant replaces the Electric Vehicle Homecharge Scheme (EVHS) and as well as being open to tenants and landlords it includes:
Electric vehicles are the future
The UK Government previously announced a ban on the sale of new petrol and diesel cars from 2030. With the lack of charging infrastructure being one of the key things thought to be holding back sales of electric vehicles (EVs), landlords can now apply for grants to install EV charging points at their properties, both residential and commercial.
There are several conditions that must be met to be eligible for a grant which is being administered by DVLA on behalf of the Office for Zero Emission Vehicles, and are claimed using a manual process initially, with a digital service expected in the Summer of 2022.
Grant paid to the installer
Once an authorised installer is chosen, they apply for the grant and must pass on the discount to the landlord or tenant meeting the remainder of the costs.
Landlords can receive up to 200 grants a year for residential properties, and a further 100 for commercial properties. These may be across several properties and installations or just for one property.
Fire protection measures
The new guidance also advises landlords installing EV chargepoints to update their fire protection measures to take account of the new installations. Further guidance on how this can be achieved in enclosed parking areas is expected later in 2022.
For more information, see the SWLA website newsfeed or the gov.uk website.
Article Abridged by Propertymark
Renters Reform
Housing Minister Eddie Hughes was answering written questions to Parliament and indicated that the Renters Reform Bill that includes proposals to ban Section 21 would be pushed back (after previously stating the White Paper would be published in Spring 2022). He seems uncertain on timescales. We will update members by email, and via our bulletin once the White Paper is published.
In answer to a question from Olivia Blake, Labour MP, Hughes said: “We are absolutely committed to delivering a better deal for renters and will be bringing forward a Renters Reform Bill in this parliamentary session. We will publish a White Paper shortly that will set out more detail on our reform proposals.”
This now leaves the door open until Spring 2023.
A reminder of what is anticipated;
Rent Controls
Labour MP, Rachael Maskell, asked Hughes: “If he will make an assessment of the potential merits of applying further controls to rents in (a) York and (b) other high cost areas.”
Hughes responded on Rent Controls: ” The Government does not support the introduction of rent controls. Historical evidence suggests that rent controls would discourage investment in the sector and would lead to declining property standards as a result, which would not help landlords or tenants. Recent international examples also suggest that rent controls can have an inadvertent negative impact on the supply of housing and may encourage more illegal subletting.
“In the Queen’s Speech 2022, we committed to introducing a Renters Reform Bill in this parliamentary session. Through this, we will abolish ‘no fault’ evictions by removing Section 21 of the Housing Act 1988, providing security for tenants in the private rented sector and empowering them to challenge poor practice and unfair rent increases without fear of retaliatory eviction.
“It is important to note that currently if tenants with periodic tenancies believe the level of rent increase is unfair, they can already refer the matter to the Property Chamber of the First-tier Tribunal for independent adjudication. The Tribunal will consider whether the rent increase is in line with market rent.”
Article Abridged from Property 118 & Propertymark
Ashley Taylors Legal provide specialist services in landlord and tenant matters throughout the UK including the South West. They are also one of the leading providers of Court Advocates (attendances) in the local County Courts. For anyone interested, they have a part time Advocacy role coming up in the South West area (around Truro). Full training is given to those without experience in Advocacy. If you wish to enquire about the role, please contact Martyn Taylor – mptaylor@ashleytaylors.co.uk
If you have a possession case going to court, SWLA members get a discounted rate for Court Advocate attendance from Ashley Taylors Legal.
SWLA members – £180 plus vat (£216)
Usual fee – £210 plus vat (£252)
If you would like to book the Advocacy service, please contact 01825 766767 or newclaims@ashleytaylors.co.uk
Cost of Living Help Announced
The UK Government has launched a new £15 billion package targeted at those most in need. As living costs continue to increase, agents and landlords will want to ensure that their tenants receive all the help to which they are entitled.
Funded by a temporary tax on the profits of energy companies, the package is made up of several different components, and individual tenants may be entitled to some or all of these.
While all these payments should be made automatically to those who qualify, tenants should be encouraged to check that they have received all the payments due to them and may need assistance in following up where they have been overlooked.
ONE-OFF £400 PAYMENT
Replacing the £200 payment which was announced earlier this year, every household will now receive a £400 credit directly from their energy supplier over six months starting in October 2022. This will not be reclaimed from future bills as was the intention with the original £200 payment announced.
Direct Debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher. This payment is in addition to the £150 Council Tax rebate previously announced and which is currently being paid.
£650 PAYMENT FOR RECIPIENT OF MEANS-TESTED BENEFITS
This payment will be made in two instalments in July and Autumn to recipients of Universal Credit, Pension Credit and other income-related benefits. To qualify, people will need to be receiving the benefit or have made a successful claim by 25 May 2022. The payments will not impact entitlement to any other benefits.
£300 PAYMENT FOR PENSIONER HOUSEHOLDS
Pensioner households will receive an additional £300 with their annual winter fuel payment in November or December 2022, paid directly to their bank account. To qualify, people must be aged 66 or over between 19 – 25 September 2022.
£150 DISABILITY COST OF LIVING PAYMENT
Anyone receiving a disability benefit, such as Disability Living Allowance (DLA) or Personal Independence Payment (PIP) will receive a direct payment of £150 in September 2022. To qualify, people will need to be receiving the benefit or have made a successful claim by 25 May 2022.
HOUSEHOLD SUPPORT FUND
In addition, the UK Government is providing an extra £500 million of local support, via the Household Support Fund, which helps those in the most need with food, energy and water bills. Help from the fund is delivered by local councils.
Article Abridged from Propertymark
SWLA are looking for landlords who rent homes in the Plymouth area to take part in a one hour online focus group on; Tuesday 5th July at 1pm. All participants will receive a £10 Amazon voucher.
We will be highlighting funding for adaptations for disabled and elderly tenants and discussing some of the benefits of future proofing properties for an increased market. You do not need to have any experience of adaptations, nor do you need to have a property that is suitable for adaptation.
If you are interested in participating, register your support by contacting the SWLA office, we will then send you access to the online Zoom event. Guests and non SWLA members are also welcome.
SWLA are working on this in conjunction with the Local Authority and other landlord associations including the NRLA to reach as many landlords as possible.
