Shelter and NRLA say both landlords and tenants must get Covid funding soon

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Shelter and the National Residential Landlords Association (NRLA) have appeared on BBC R4’s You & Yours programme, making a united call for the government to support landlords and tenants during the pandemic.

While the organisation and charity don’t always see eye-to-eye, they’re both demanding financial support to help tenants clear Covid-related arrears.

On the programme, they responded to Ian’s story, a tenant from Worthing interviewed about his £2,700 debt, who has been served with a notice to quit.

After losing his job in events last March, Ian admitted that he’d had different conversations with his landlord and letting agent.

“The landlord tried to give me some assurance that if I managed to get up to date with rent by April then he may reconsider moving forward with the eviction process,” said Ian.

Hard-faced

“However, the lettings agent was more hard-faced – they want the money paid immediately which is not possible when you can’t work.”

The NRLA’s deputy director of campaigns, public affairs and policy, Meera Chindooroy (pictured, above) explained to listeners that most landlords who have faced a reduction in rent due to the pandemic had covered losses from their own savings – but that the situation wasn’t sustainable.

“Government support hasn’t reached landlords – they haven’t been eligible for Bounce Back Loans or self-employment support,” said Chindooroy.

“We are calling for the government to provide financial support for landlords and tenants to help to sustain tenancies in the long term.”

Shelter’s policy manager Ruth Ehrlich (pictured) agreed that most tenants and landlords were trying to do all they could to work through the crisis.

She added: “We completely agree that the government now needs to step in to help renters like Ian to clear his arrears. It’s not right that right now, when the virus is running rampant, that people are losing their homes.”

Watch the BBC Radio 4 show.
Read more about Shelter.

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Repossession claims down since lifting of ban

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Warnings of a surge of evictions following the partial lifting of the repossessions ban in September last year have proved to be unfounded according to government figures released today.

Data published by the Ministry of Justice shows that in the fourth quarter of 2020

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BREAKING: DOJ’s own figures show evictions ‘tsunami’ has failed to materialise during Covid

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Warnings by many tenant charities that there would be a surge of evictions following the partial lifting of the repossessions ban in September last year have proved to be unfounded, government figures released today show.

Ministry of Justice figures reveal that during the final three months of last year the number of claims made by private landlords in England and Wales to repossess properties fell by 37 per cent compared to the same period in 2019.

This is despite the courts beginning to hear possession cases again following a six month stay on proceedings in response to the COVID-19 pandemic.

The number of possession claims made under the accelerated procedure, used by both private and social landlords, also fell by just under 43 per cent in the fourth quarter of 2020 compared to the same period in 2019.

Overall, across the whole of 2020, the number of claims by private landlords to repossess properties fell by 48 per cent, with the number of claims made under the accelerated procedure fell by just over 52 per cent.

Rent debt crisis

Despite these positive figures, the NRLA says the scale of the rent debt crisis now engulfing the sector means that without further government support, landlords cannot continue that support indefinitely.

Its research shows that over 800,000 renters in England and Wales have built arrears since lockdown measures started in March last year.

The NRLA is calling for a package of hardship loans and grants for affected tenants to pay off arrears built since March last year, ensuring tenancies are sustained and preventing many renters facing the consequences of damaged credit scores.

“Today’s figures show that despite fears to the contrary, landlords have prioritised sustaining tenancies and supporting renters during the pandemic,” says Ben Beadle, its chief executive.

“That said, landlords cannot continue indefinitely going without receiving rent.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: DOJ’s own figures show evictions ‘tsunami’ has failed to materialise during Covid | LandlordZONE.

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Lawyers question new government mediation service as ‘backlog clearing’ exercise

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The government’s news evictions mediation service for landlords and tenants shouldn’t be seen as the whole solution to current court delays and backlogs, the Law Society has warned.

Instead, it says the £3 million allocated to a new mediation pilot would be better channelled into the Housing Possession Court Duty Scheme (HPCDS) and early legal advice, which ensures tenants have access to justice and support that can stop them being evicted.

The government launched the Housing Possession Mediation Scheme for landlords and tenants, provided by The Society of Mediators, last week.

This will last for between six and nine months and offer a free, dedicated service where clerks will engage with possession claims as they progress through court, and facilitate settlement without a substantive hearing, where possible.

Mediation process

The service is understood to be voluntary and both landlord and tenants must agree to take part in the mediation process.

However, The Law Society fears it could impact on the sustainability of legal aid and the duty scheme, which allows anyone in danger of eviction or having their property repossessed to get free legal advice and representation on the day of their hearing, regardless of their financial circumstances.

President David Greene says while mediation has an important place in dispute resolution, it can’t replace the usual routes of access to justice or take money from schemes.

He says: “Vulnerable and unrepresented tenants may feel pressured to undertake mediation and may be misrepresented, as mediators are not housing dispute specialists. The mediation pilot must go beyond simply clearing the backlog and move forward with the struggles of the housing sector at its core.”

Adds Greene: “Despite calls from across the housing sector to the Legal Aid Agency and the Ministry of Justice to ensure the continued availability of funded legal advice, investments have not been made.”

Visit the Housing Possession Mediation Scheme website.

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MTD vs Self-Assessment Tax Returns – understanding the coming changes

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The big changes are in the submission frequency and digital submission process. Firstly, you will need to complete not one but five tax submissions per year ‒ one every quarter with the final one being an annual summary. These returns also need to be submitted to HMRC via recognised and integrated tax software.

Although it may seem like a big change, there are a lot of similarities with the traditional approach you are used to.

MTD vs Self-Assessment ‒ Similarities

While the process may be different, the tax rules are exactly the same as for self-assessment. You’ll still need to submit your income and expenses, so it’s important to keep hold of receipts and collate the information somewhere.

However, some MTD tax software, such as APARI, allows you to upload bank statements and tag relevant transactions, making the process much quicker and easier than using spreadsheets (though you can still upload a spreadsheet if that’s what you’re into). If you are yet to set up a business bank account, however, now is the time. It’ll make the process much easier later down the line.

You can still claim for all the same allowances and deductions as you would on your traditional self-assessment tax return. You can include these as you go or as part of your annual summary.

Speaking on annual summaries, they are still due on the same date: January 31st. So don’t worry about remembering an entirely new date. What’s more, your tax software should alert you about all upcoming submissions so that you never miss a deadline. You will also pay your tax bill in just the same way, including Payments on Account for the upcoming year.

Benefits of MTD

Completing five tax submissions a year may sound like a hassle but it will help spread the workload out over the year. Instead of the New Year panic that most landlords experience, you’ll simply have to upload your transactions, check the details, and click submit once every three months. Your annual summary should take no longer than your annual self assessment calculation does

Since you are also using software to collate your account information, calculate your tax, and submit, you’ll no longer need an accountant, saving you a fortune in accountancy fees. Of course, an accountant may still be useful in some circumstances, such as getting advice or helping you plan, but you can use them sparingly when you need to rather than feeling forced to hand over large sums every year.

By regularly updating your accounts, you’ll also gain a real-time estimate of your final tax bill, helping you save the right amount of money to pay in January. No more nasty surprises when you come to file your return!

And, with all your account information in one place, you will be able to quickly and easily use your tax software to see your yield per property, performance, and plan for upcoming expenses. APARI will even notify you when you need to renew contracts, safety certificates, and so on, helping you keep on top of your property management.

As you can see, while MTD may cause some headaches in the short term, once you get to grips with it you will begin to see a range of benefits. With more information within your control, you can plan your finances better, gain a better overview of your rental income and expenses, and save both time and money.

With the first UK taxpayers using APARI to complete their MTD tax returns for the financial year 2019/20, the software has now been validated by real users and the integration with HMRC fully tested.

If you would like to join them and get to grips with MTD ahead of time, complete this short questionnaire to check your eligibility and register for your free MTD account for landlords: https://apari-digital.typeform.com/to/KotPhhMz

Sign up to the APARI Community and get access to exclusive webinars and content that will keep you informed and up to date with the MTD rollout.

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