Landlord duo’s £58,000 fine for first-time offence despite ‘naïve mistake’

A landlord family have been slapped with a £28,000 rent repayment order (RRO) and combined fines of ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Landlord duo’s £58,000 fine for first-time offence despite ‘naïve mistake’ | LandlordZONE.

Landlord duo’s £58,000 fine for first-time offence despite ‘naïve mistake’

A landlord family have been slapped with a £28,000 rent repayment order (RRO) and combined fines of £30,000 for a first-time offence of neglecting to licence their HMO.

Colin and Jacqueline Cain were ordered to pay £4,000 each to seven former tenants of their house in Wiggington Road (pictured), York, by a First Tier Property Tribunal after property manager Victoria Cain was fined £20,000 by York City Council and Colin Cain was fined £10,000.

But the fine could have been much worse – the couple were given a 30% discount on the RRO after admitting their ‘one-time’ mistake in not applying for a licence, that they had been badly advised, had tried to reach a settlement with the tenants and that they lacked funds to repay the penalty.

The tribunal also heard that there had been no complaints about the accommodation or management from the tenants or council, and that the Cains were the “very opposite of serial offenders” flouting the law.

One-time offence

“This one-time offence occurred by mistake, through naivety as to legal requirements,” it said.

The seven tenants had sought a rent repayment order of £40,350 for rent paid during the 12-month tenancy from 1st July 2018.

It ruled: “The respondents were not professional landlords with a wider property portfolio. The above findings concerning the respondents’ good conduct and clean history justify a discount to the rent to be repaid.

“The tribunal considers a discount in the order of 15% in each of these areas to be appropriate, giving rise to a repayment of 70% of the total rent.”

LandlordZONE has approached York City Council for comment.

Read the full decision.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - Landlord duo’s £58,000 fine for first-time offence despite ‘naïve mistake’ | LandlordZONE.

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BREAKING: HMRC gives landlords more time to comply with new ‘making tax digital’ rules

The government has given landlords and other businesses a further year to prepare for HMRC’s Making Tax ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - BREAKING: HMRC gives landlords more time to comply with new ‘making tax digital’ rules | LandlordZONE.

BREAKING: HMRC gives landlords more time to comply with new ‘making tax digital’ rules

The government has given landlords and other businesses a further year to prepare for HMRC’s Making Tax Digital (MTD) initiative.

MTD was to come in for landlords who fill in self-assessment forms with a business or personal income over £10,000 a year in the tax year beginning April 2023, but this has now been extended by a year.

HMRC says it has made the decision following feedback from property portfolio landlord and other business operators and their representatives about the additional challenges caused by the pandemic.

Forming part of the government’s ambition to become one of the most digitally advanced tax authorities in the world, MTD is the first phase of HMRC’s move towards a ‘modern, digital tax service fit for the 21st century’.

More time

This means affected landlords will now have more time prepare, while the government says the delay gives it more time to assess an ongoing MTD pilot and tweak the system.

Once it does come in, the new rules will require landlords to store details of their affairs digitally and file their tax returns using specialist software on a more regular basis.

Lucy Frazer MP, Financial Secretary to the Treasury (pictured), says: “The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity.

“But we recognise that, as we emerge from the pandemic, it’s critical that everyone has enough time to prepare for the change, which is why we’re giving people an extra year to do so.”

MTD has not been without controversy. was forced to clarify that the new rules would not make it more expensive for landlords to post their tax returns after the NRLA and its counterpart in Scotland, the SAL, flagged up its concerns about the ‘potential costs and accuracy of returns’.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - BREAKING: HMRC gives landlords more time to comply with new ‘making tax digital’ rules | LandlordZONE.

Source : Landlord Zone More   

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