EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’

Restrictions affecting landlords are set to be eased next month. Increased notice periods when it comes to ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’ | LandlordZONE.

EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’

Restrictions affecting landlords are set to be eased next month.

Increased notice periods when it comes to repossessions and a ban on enforcement action in all but the most serious of cases were introduced by Government in a bid to protect tenants during the pandemic.

Now, with figures falling and the country gradually opening up again the restrictions are set to ease. But what will change look like?

At the time of publication while the Government had ministers had given no indication as to how – or the timescales involved.

For our part we have been working tirelessly behind the scenes in Westminster and Cardiff Bay to shape the way we transition out of emergency measures.

NRLA research shows landlords have been hit hard by the pandemic. In all 60% have lost money, with data showing 840,000 tenants have built arrears since last March.

We want assurances from the Government that exiting the emergency restrictions will be as seamless as possible and work for landlords and tenants alike.

As part of this we have submitted a paper to Government outlining simple changes that could have a major impact on exit plans, while ensuring support is available to those who need it.

We have asked for: 

  • a comprehensive financial package which tackles rent debt
  • court reform to speed up the processing of possession claims
  • firm dates for the tapering down of extended possession notice periods

Arrears

We have joined forced with partners from across the sector – including both landlord and tenant-focussed groups – to call for a Government-backed interest-free loan scheme for tenants to access to pay off Covid-related arrears and continue to campaign on the issue.

In addition we want grants to be made available to benefits tenants to reduce the pressure on individual landlords.

Courts

With year-long waits from claim to court to enforcement action is needed to speed up the process and tackle the ever-increasing backlog.

To this end we are encouraging the Government to allow possession hearings to be heard by video link which we believe could have a huge impact on court waiting times.

There are also technical changes we believe can make a difference, including the introduction of a consistent definition of serious rent arrears, which currently differs between the court and the Government in the prioritisation of pre-Covid cases.

Tapering of notice periods

We also want the tapering of notice periods to begin as soon as the current restrictions end on June 1st. A progressive reduction in notice periods will help to ensure the most serious cases are heard most quickly by avoiding immediately overwhelming the courts.

With an announcement expected imminently, we hope the Government will look at adopting our proposals to support the sector, taking positive action to help landlords and tenants recover from what has been a year of unrivalled challenges.

For more information on our calls for financial support for the sector click here.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - EXCLUSIVE blog: ‘This is what Ministers must do to help landlords as Covid eases’ | LandlordZONE.

Source : Landlord Zone More   

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UPDATE: HMRC’s Making Tax Digital to be extended to more businesses

The digitisation of business and personal accounts reporting to HMRC is coming soon for businesses below the ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - UPDATE: HMRC’s Making Tax Digital to be extended to more businesses | LandlordZONE.

UPDATE: HMRC’s Making Tax Digital to be extended to more businesses

The digitisation of business and personal accounts reporting to HMRC is coming soon for businesses below the VAT threshold.

It is now less than 12 months before those VAT registered businesses with turnovers below the VAT threshold will have to report following the (MTD) rules. If you fall into this category you need to start planning for MTD now.

Currently only VAT registered businesses making taxable supplies in excess of the £85,000 VAT registration threshold are mandated to comply with Making Tax Digital (MTD) rules.

Those rules require business to keep digital business records and send VAT returns using software that is compatible with MTD.

MTD for VAT is now being rolled out to all VAT registered businesses from April 2022 which may cause some businesses and the self-employed who are VAT registered but below the threshold to consider deregistering to avoid having to comply with MTD for VAT.

If you decide to do so you will need to complete Form VAT7 and account for output VAT on the market value of stock and assets still owned at the date of deregistration. This is where input VAT has been reclaimed on those assets.

There is however a £1,000 minimum which means that output VAT does not need to be accounted for where the combined market value of the assets is less than £6,000.

Unfortunately, deregistering for VAT will not necessarily avoid MTD as the requirement to keep business records digitally will be introduced for income tax from April 2023.

From then MTD for income tax will apply to businesses with gross income in excess of £10,000 a year which will include property landlords as well as traders and professionals.

The Making Tax Digital deadlines:

  • April 2019: VAT-registered businesses with a taxable turnover over the VAT threshold (£85,000) need to keep digital records and submit digital VAT returns using compatible software.
  • October 2019: more complex businesses such as trusts, not for profits and public bodies who were deferred need to comply with Making Tax Digital
  • April 2022: MTD will be compulsory for businesses with a turnover below the £85,000 VAT threshold
  • April 2023: MTD will apply to all taxpayers who file Income Tax Self-Assessment returns for business or property income of more than £10,000 a year

HMRC says that Making Tax Digital was introduced to get small businesses and the self-employed to keep and complete digital tax records and submit digital returns using compatible software. The eventual goal is for HMRC to go completely paperless.

HMRC argue that going digital will be “easier for individuals and businesses to get their tax right and keep on top of their affairs.”

In 2015 HMRC introduced the personal tax account for everyone, which can be accessed online and which is a digital tax record which makes it easier for individuals to manage their tax affairs.

Not acceptable

Eventually, paper records will not be acceptable to HMRC and will not meet the requirements of the UK tax legislation.

When you start to use Making Tax Digital for your business and Income Tax you will need to use appropriate software approved by HMRC. This lets you send Income Tax updates to HMRC and keep records of all your income and expenses.

If you’re already using software to keep records, you need to check if your software has been approved, otherwise you will need to transfer your existing accounts to a software package that is compatible with Making Tax Digital.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - UPDATE: HMRC’s Making Tax Digital to be extended to more businesses | LandlordZONE.

Source : Landlord Zone More   

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