Health and Safety Checks

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Thought I send you my recent observation on H&S with fire prevention awareness week coming up shortly. I manage my properties and have been doing my pre-winter and H&S checks. I managed to see 6 tenants the other day so have now acquired few repair jobs (deep joy).

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A story for now and future generations to come

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A skyline filled with cranes greets you on the approach to Birmingham.  This is a very real and exciting indication of the scale of rejuvenation taking place in the city, and the potential it holds. 

This past Saturday

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Self-Assessment deadline approaches

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Landlords’ Tax:

New landlords should be aware that they need to register with HMRC for self-assessment and file a tax return no later than 31^st of January next, and landlords will so need to get geared-up for Making Tax Digital (MTD), a new way to file your tax return.

Anyone earning more than £2,500 in income from renting out property during the 2017-2018 tax year (6^th April 2017 to 5^th April 2018) must register with HMRC before the 5^th of October, just a week away as this is published.

By registering on time you will make sure that you comply with the law and have a User ID and Activation Code in good time for filing in January.

Your Personal Tax Account

HMRC has introduced this new service to allow everyone to manage their personal tax affairs through an online Personal Tax Account. It provides a convenient way to view and manage your tax affairs in one secure place. There are a range of services available currently and HMRC say there are more being added all the time.

You can use your personal tax account to:

• check your Income Tax estimate and tax code
• fill in, send and view a personal tax return
• claim a tax refund
• check and manage your tax credits
• check your State Pension
• track tax forms that you’ve submitted online
• check or update your Marriage Allowance
• tell HMRC about a change of address
• check or update benefits you get from work, for example company car details and medical insurance

Visit the HMRC website to sign in or set up your Personal Tax account

HM Revenue & Customs (HMRC) has been phasing in the use of online personal tax accounts for some time now but from 2020 onwards, all UK taxpayers (business and personal) will be required to manage their tax affairs online as part of the government initiative – Making Tax Digital (MTD).

While the staging dates for MTD are being staggered for different groups, to make implementation as smooth as possible, the government is encouraging taxpayers to go digital sooner rather than later. Users are being invited to sign up when they log in to their HMRC online services account or via the GOV.UK website.

What Landlords Need To Know about MTD

Making Tax Digital is the Government’s plan to transform the current tax system into a fully digital service, and landlords are among the first to be affected.

From April 2019, incorporated landlords with incomes above £85,000 (the current VAT threshold) will be expected to keep digital records for VAT purposes. You will also have to submit your VAT return to HMRC through MTD compatible software which will pull information from the digital records.

HMRC will be providing a list of approved accounts software suppliers, which will no doubt include the main-line tax accounting software providers.

Unincorporated landlords and small businesses with an annual turnover between £10,000-£85,000 will be required to join at the income corporation tax phase, which is likely to be April 2020. At this time you will be required to:

• Keep digital records detailing, dates, rental values, income and expenses.
• Send quarterly reports to HMRC using third party software, summarising your business’s income, expenditure and profits.
• Make an end of year declaration (after any necessary adjustments).

All of this will be done through your personal tax account which will securely store all of your tax records. When properties are owned by a partnership, submissions will be made to a business digital tax account by a nominated partner. In a jointly owned property, each individual who receives income will need to report it separately.

This is a major change to the way the UK tax system operates and landlords will be right at the heart of it. The sooner you get registered and in the swing of things the better. HMRC says the advantages of this are:

• An end to manual submissions means fewer mistakes and serious time savings.
• Quarterly reports will show you how much you owe in real time.
• You’ll have a single picture of your liabilities and entitlements through your personal tax file.

Software providers will be working with HMRC to make sure their tax accounting software is compatible with MTD to make the process as smooth as possible for users.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Self-Assessment deadline approaches | LandlordZONE.

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Rental cost and increases at record levels

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In August, the number of tenants experiencing rent hikes increased to 40%, from 31% in July. This is the highest figure recorded since records began in January 2015 and the highest level every in August.

Year on year

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Leading builders still building fewer homes

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Home Building:

Leading developers Barratt, Persimmon and Taylor Wimpey, it is being argued, are still building fewer homes than they were 10 years ago, before the financial crisis hit. This is despite being handed out millions from the taxpayer through the government’s Help-to-Buy scheme.

The house builders themselves are claiming that the Help-to-Buy scheme is crucial in the country’s efforts to tackle the chronic housing shortage. But detractors are arguing that all that the scheme is achieving is higher house prices at the lower end of the market, resulting in inflated builders’ profits and their director’s pay, while doing little or nothing to help struggling first-time buyers.

According to the Daily Mail, Persimmon, whose boss Jeff Fairburn has been dubbed “Mr £131 million� over the size of his bonus, built 16,043 homes last year and another 8,072 in the first six months of 2018.

Accordingly, analysts at AJ Bell have come up with figures to show that Persimmon is on course to build 16,685 homes this year, compared to 16,701 in 2006. If it meets its target this year its profits would be nearly £1.0 billion.

Despite its failure to build more homes, and in spite of the government incentives, Mr Fairbum was handed £47.1 million last year, being the first tranche of his bonus. An analysis of the company’s accounts shows that profits went from £225 million in 2012, one year before the Help-to-Buy scheme was introduced, to £977 million last year.

It’s a very similar story with the other builders.

Sam Dumitriu, head of research at the Adam Smith Institute think tank, has said:

“Help to Buy creates more demand for housing, which pushes prices up, without increasing supply.

“Simply adding more fuel to the fire, and more demand to the system, only makes Britain’s housing problem worse.’ Help to Buy allows house hunters to purchase new-builds worth up to £600,000 using deposits of 5 per cent.�

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Leading builders still building fewer homes | LandlordZONE.

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Changes to Section 21 notices from October

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On 1st October 2018, changes to the Section 21 Notice come into force for letting agents and landlords. This will require all Assured Shorthold Tenancies (ASTs), regardless of their start date, to comply with guidelines as to when and how a landlord can serve a Section 21 Notice

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Brooklands CF Bridging and Development Finance Seminar

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Thank you very much to Malcolm and his team at Brooklands Commercial Finance along with Shawbrook Bank for running the seminar and using the Shawbrook offices in the heart of the City.

We started with a Mortgage and Lender Market Update in particular discussing rental stress testing and the amount you can borrow by using the advantages of criteria on 5 year fixed rates and in the name of a limited company.

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Bod’s decision on whether or not to incorporate his rental property business

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Bod has a dilemma.

He is a portfolio landlord who is badly affected by the Section 24 restrictions on finance cost relief.

We have been friends on Facebook for a long while and Bod messages me regularly.

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Hackney landlords told to get HMO licensed

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HMO Licensing:

Landlords in Hackney could face unlimited fines and prosecution unless they apply for a licence by 3 December, as part of new property licensing measures coming into force in Hackney

The new powers mean that landlords of all private rented homes in Brownswood, Cazenove and Stoke Newington wards will need to hold a licence committing them to keeping properties safe and treating tenants fairly.

And landlords of the 4,000 Houses in Multiple Occupation (HMOs) – with two or more households and shared facilities such as kitchens, bathrooms and toilets – across the borough will also need a licence requiring them to meet acceptable standards.

Those who don’t get licensed or fail to comply with the conditions will face fixed penalties of up to £30,000, a criminal prosecution with unlimited fine, or be forced to pay tenants back up to a year’s rent. Serious offenders can be banned from letting homes completely, and placed on a rogue landlords’ database.

The Council’s private housing enforcement team is set to almost double in size to uncover perpetrators and tackle issues such as inadequate heating, damp and mould, dangerous boilers, exposed wiring and vermin infestations.

Council research found that around one in five homes covered under the new measures suffer from serious hazards, disrepair or poor management.

Kim Wright, Group Director for Neighbourhoods and Housing, said:

“Many of Hackney’s landlords provide a good, professional service, and we’re looking forward to working with them to create better conditions for renters in Hackney.

“But these new measures – along with our expanded enforcement team – will tackle those who don’t treat renters fairly or keep their homes safe.

“We’re encouraging all landlords to check if they need a licence and get their applications in to us before we begin enforcement in December.�

Full details on the new property licensing measures, including which landlords need a licence and the licensing conditions, are available at:

www.hackney.gov.uk/property-licensing

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Hackney landlords told to get HMO licensed | LandlordZONE.

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Urgent help needed on 1991 Building Reg compliance

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I desperately need help with what to do with my shop that has self contained flats above re s157.

I have drawn a blank with anyone who can help me ascertain 1991 Building Reg compliance so I’m exempt from licensing.

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