The Monetary Policy Committee of the Bank of England has agreed to raise interest rates by 0.5 per cent to 2.25 per cent.
The vote was a 5-4 majority and reflects differing opinions amongst the committee – five members voted to raise base rate by 0.5 per cent; three members wanted a larger 0.75 per cent hike; and one wanted a smaller 0.25 percentage points.
Tim Bannister, Rightmove’s analyst, says: “Although the majority of people are on fixed rate mortgages, there’s a looming concern for those with their terms due to end over the next six months or so as interest rates continue to creep up. It’s likely that those who choose to fix again will find that rates have doubled in some cases since they last locked in, and so despite paying down some of their debt they could find their new monthly mortgage payments are higher, even if they’ve moved into a lower LTV bracket and have built up equity. They will now face the tough decision of moving to a tracker mortgage in the hope that interest rates drop again soon, or taking another fixed deal for a bit more certainty on their outgoings.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “From our experience on the ground, the impact of the interest rate rise will be felt most with regard to confidence to move and take on debt. The increase will impact first-time buyers and new borrowers particularly, bearing in mind approximately 80 per cent of borrowers are on fixed rates.
“However, with UK Finance forecasting that 1.8m deals are due to end at some point next year, there will be plenty of borrowers looking for new mortgage deals at a time when rates are likely to be considerably higher. Although rates are still low compared with their historical average, the impact is exacerbated by continuing worries about inflation and the economy generally.
“The longer the climate of higher interest rates persists, the more likely it is that people will consider selling, leading to a softening in prices. However, it is worth remembering that around 50 per cent of homeowners are not dependent on mortgage finance at all so will be unaffected.”
Tomorrow the new Chancellor, Kwasi Kwarteng, will set out details of a so-called government growth plan, estimated to cost up to £150 billion. Prime Minister Liz Truss has vowed to cut taxes, including a possible stamp duty cut as well as undoing the rise in National Insurance brought in by her predecessor Boris Johnson. She has also said she would temporarily scrap green levies on energy bills, in a bid to bring down prices for consumers.
Nathan Emerson, the chief executive of Propertymark, says: “Recent rises have been so widely spoken about that this has fed directly into consumer sentiment and has left some people uneasy about moving home, but those looking to enter the market should not be spooked by this. Despite increases, the majority of buyers and sellers are taking advantage of the cooling off in house prices and the slight easing in competition, and they continue to enter a strong and healthy market.”
Article from Letting Agent Today
Future Fit is a local partnership between Plymouth Energy Community (PEC) and Plymouth City Council which has one key aim – to help our local community stay warm and save money by upgrading their homes.
Plymouth Energy Community is a charity and a social enterprise that want to make a better future for our local community, and the planet. So, by helping your tenants to have warmer homes and lower their heating costs, we’re also reducing greenhouse gas emissions and working towards climate change.
how does it work
Am I eligible?
Our eligibility criteria is as follows:
What happens Next
Organising these schemes working with multiple funding sources and different installers can get complicated, so this process helps us to keep things ordered.
WHAT KIND OF HOME IMPROVEMENTS?
There are lots of ways we can help improve your property. It all depends on what your property needs and what eligibility criteria you meet. Some of the improvements we may be able to make are:
PEC is acting as an advisory and support service, helping homeowners to identify experienced and competent installers who can undertake the works for them.
PEC is not acting as a broker or an agent in this process and is not procuring services on the Council or customer’s behalf.
For more information see the Plymouth Energy Community website; https://plymouthenergycommunity.com/
On the day of Her Majesty Queen Elizabeth II’s funeral, our offices will be closed as a mark of respect.
The office will reopen at 10am on Tuesday 20th September.
Renting Minefield Energy Efficiency – The world (& the law) is changing
Wednesday 22nd September 2022
Exeter Racecourse, Haldon Hill, EX2 4DE
5.00pm – DOORS OPEN
5.00pm to 6.00pm NETWORKING
Chair: Hannah Darling (National Residential Landlords Association)
What questions should you be asking the professionals – and yourself?
Dick Scott (Monitor BCS)
Decarbonising Homes with solar PV and other technologies
Paul Rogers (National Energy Action)
7.00pm to 8.00pm NETWORKING
A Practical Illustration of a Landlord`s legal Duties, Today and Tomorrow!
Phil Keddie (Sunshine Property Consultants)
Supporting tenants through the cost of living crisis
Exeter Community Energy & Lendology CIC
Property Tax Update
Debbie Franklin, Peplows
There is free parking.
Register for your free place now here.
For more information please contact 01392 265833 email email@example.com
GoSimpleTax: Demystifying Landlord tax and expenses when filing your tax return
Sign-up Link – https://meet.zoho.com/s00COjUzQ8
Date: Thursday 22nd September at 11am.
Description – GoSimpleTax’s in-house tax expert, Aiden Corcoran, will look to de-mystify landlord tax and expenses. Aiden will talk about…
Questions can be emailed in advance to firstname.lastname@example.org
PERSONAL TAX SENIOR
Aiden has joined the GoSimpleTax team as a Chartered Tax Advisor, sharing his wealth of knowledge via our support desk and webinars. Aiden has 8 years of tax knowledge with him and aims to help develop new services.
**PLEASE NOTE, THIS IS NOT AN SWLA WEBINAR**
Landlords legal responsibilities – Annual Gas Safety Checks
We are proud to be supporting Gas Safety Week 2022, taking place 12 – 18 September.
Gas Safety Week is an annual safety week to raise awareness of gas safety and the importance of taking care of your gas appliances. It is coordinated by Gas Safe Register, the official list of gas engineers who are legally allowed to work on gas.
Badly fitted and poorly serviced gas appliances can cause gas leaks, fires, explosions, and carbon monoxide (CO) poisoning. CO is a highly poisonous gas that can kill quickly with no warning, as you cannot see it, taste it, or smell it.
Landlords are legally responsible for the safety of their tenants. Landlords must make sure maintenance and annual safety checks on gas appliances are carried out by a Gas Safe registered engineer to ensure their tenants and wider communities stay safe.
If you’re a landlord, you are legally obliged to make sure:
Before any gas work is carried out always check the engineer is qualified to carry out the work that needs doing e.g., natural gas, domestic boiler. You can find this information on the Gas Safe Register website or by checking the back of the engineer’s Gas Safe ID card. Encourage your tenants to also check the card when the engineer arrives at the property, and to be aware of any warning signs that their gas appliance is working incorrectly, such as dark or sooty staining, excess condensation and pilot lights which frequently blow out.
For more information and to find or check an engineer visit GasSafeRegister.co.uk.
Private landlords, letting agents and anyone else involved in letting property are invited to East Devon’s premier event on 22 September 2022 from 5pm at Exeter Racecourse. In partnership with Exeter City Council and Teignbridge District Council.
There will be exhibitions from specialist companies covering all aspects of property management and energy efficiency. As well as support businesses and organisations to help smooth the tenancy pathway. There will be a range of professionals on hand to answer your questions.
Helpful bite-size talks throughout the evening will focus on energy efficiency; accessing finance for retrofit projects; financial advice; updates on recent policy and legislation changes.
Doors open at 5.00pm for networking opportunities and refreshments. Bite-size talks start from 6.00pm.
Exeter Racecourse, Haldon, Near Exeter, EX2 4DE
There is free parking.
Register for your free place now here.
For more information please contact 01392 265833 email email@example.com
Speakers will include:-
Stella Goodman – Director of Excaliber Associates:
Rate rises? Recession? What does this mean for the BTL lending market?
Sue Pope – Fire Safety Consultant at Health & Safety Matters:
Fire Safety: Landlords, are you compliant?
The Department for Levelling Up, Housing & Communities (DLUHC) has dismissed concerns from HMO student landlords that its plans to bring in periodic tenancies will damage the sector.
Under the proposals, students will be able to give two months’ notice at any time, making finding a replacement very difficult. Students will also be able to remain in the property after the end of the academic year as there will be no fixed term.
In its response, the DLUHC explains that while it expects most students to continue to move in line with the academic year, some might face circumstances beyond their control and will need to vacate a property early, or could be locked into contracts for poor quality housing.
A department spokesman says: “Some students have families, local roots, live with non-students, or have other reasons why they may wish to remain in the property. We do not think it would be fair to apply different rules to students who often require the same level of security as other tenants, or face poor standards within the private rented sector. Therefore, all students who are renting a private home will have periodic tenancies, providing the same certainty as all other tenants will enjoy.”
It adds that it is fair to exclude purpose-built student accommodation landlords who have joined government approved codes of practice from the new regime as these codes set, “vigorous standards for the safety of student accommodation, the management of the property and the relationship between managers and student tenants”.
SWLA hope that this decision within the Rental Reform is rethought, so that students and landlords can continue to secure their next academic year’s tenancies early and have some certainty with their accommodation/letting plans.
Article Abridged from Landlord Zone
The system allowing Adjusted checks (using Zoom calls and copies of documents for example), ends on 30 September 2022.
From 1 October 2022, agents and landlords responsible for tenancy applications and repeat Right to Rent checks will need to revisit their processes in readiness either for a return to manual face-to-face checks (which will still be permitted where someone shows eligible identification as a UK and Irish citizen) or be signed up to one of the proptech service providers certified by the UK Government as a digital identity service provider (IDSP). Checks on overseas nationals will need to be processed using the Home Office’s share code system which can be accessed by agents and landlords, free of charge.
Adjusted checks were introduced as part of COVID-19 measures to reduce face-to-face contact and were extended while the Home Office worked to introduce a robust digital solution for checks on UK and Irish nationals. Once Adjusted Right to Rent checks end, where a landlord wants to offer a digital check to those with UK and Irish ID, the landlord will need to be signed up to an IDSP incurring a chargeable service. Alternatively, landlords will be able to offer manual, face-to-face checks where the applicant offers eligible UK or Irish ID. Where landlords do choose to utilise an IDSP, they must make allowance for British and Irish nationals who choose for their identity to be verified offline and must not discriminate on this basis.
Digital checks on overseas nationals can be conducted simply and without incurring external costs using a digital share code and date of birth provided by the applicant and checked via the real-time Home Office system.
Follow up Right to Rent checks remain as important as ever
If landlords have been unable to obtain the repeat Right to Rent check for an overseas national during a tenancy, the Home Office should be notified in order that the landlord establishes a ‘Statutory Excuse’ which will provide the legal audit trail against any overstayer and/or a civil penalty.
Note – the date on which adjusted Right to Rent checks ends may be pushed back – it has been before! If there are any changes to this date – we will keep members informed.
Article Abridged from Propertmark
For in depth Right to Rent Guides and information, see the gov.uk website;
Monthly direct debit users. Will see the grant paid automatically by your supplier – either refunded straight into your bank account, or in the form of a direct debit reduction.
Standard credit customers. This includes those who pay by cash, card or cheque after receiving a monthly or quarterly bill. You’ll get the payment automatically – all suppliers will pay this in the first week of each month between October 2022 and March 2023. It’ll typically be added as credit to your energy account.
Smart prepayment meter customers. You’ll get the grant automatically as credit applied directly to your meter in the first week of each month. However, one concern is that credit is typically paid towards your electricity use, not your gas. Bulb, for example, is making the credit transferable, but we want more suppliers to follow suit and it’s an issue we’ll push on.
Traditional prepayment meter customers. Ensure your supplier has up-to-date contact details for you as your money will be sent as six separate vouchers via text, email or post – which you’ll need to redeem by topping up as normal in a shop or post office. You’ll have three months to redeem each voucher – and if you lose them or they expire, they can only be reissued up until 31 March 2023.
Article Abridged by MSE
Article By GoSimpleTax
Going into business with a partner or partners can offer many benefits. You can gain from other people’s talent, ideas, knowledge, skill, contacts and cash, just as they can gain from yours. You can also share the workload, risk and responsibilities, while avoiding feelings of isolation that can happen when running a business on your own.
The UK has some 384,000 ordinary business partnerships, which is about 7% of the total business population. And whether it’s friends, family, partners, spouses or colleagues, many people continue to start and run a business with partners.
Moreover, in recent years, more people are forming partnerships with others to buy and rent out properties they own as private landlords. There can certainly be many advantages to this, whether that’s linked to tax or simply sharing responsibility and risk.
Members of ordinary business partnerships and those who rent out property through a partnership report taxable income via the SA800 Partnerships Tax Return.
In this guide we explain:
What the SA800 is.
What is an “SA800”?
An SA800 Partnership Tax Return (usually shortened to “Partnership Tax Return”) is the tax return that members of ordinary partnerships must complete and file to tell HMRC about the partnership’s income and “disposals of chargeable assets” (ie selling an asset).
As explained by HMRC in its guidance notes: “Every partnership gets the first eight pages of the Partnership Tax Return covering income from trades and professions, and interest or alternative finance receipts from banks, building societies or deposit takers. There are other ‘supplementary’ pages covering the less common types of income and disposals of chargeable assets.”
Need to know! In addition to the main SA800 tax return, each partner must also file a personal tax return (SA100) and the SA104 supplementary pages to declare their share of any profit or loss. Submitting the SA100 and the SA104 determines how much tax, if any, individual partners must pay. Often this gets missed and results in partners being fined by HMRC. A separate page must be completed for each partnership someone belongs to.
How to register a business partnership
You must register your partnership for Self Assessment with HMRC if you’re the ‘nominated partner’ (the partner responsible for tax and filing the partnership tax return).
You must register before 5 October in your business partnership’s second tax year, otherwise there could be a penalty to pay. The other partners must register themselves separately as a partner. You won’t be able to file an SA800 Partnership Tax Return or a tax return for yourself unless you’re registered.
SA800 Partnership Tax Return supplementary pages
Some types of income are taxed differently when earned through a partnership, for example, rental income or income earned from outside of the UK. You must tell HMRC about these in the SA800 and then provide details in supplementary pages. Such sources of income and the supplementary pages used to report them include:
You use supplementary pages SA800(PS) to declare earnings from sources that aren’t trading/professional income.
You use supplementary pages SA800(TP) to record income from more than one trade or profession on your SA800 Partnership Tax Return.
You use supplementary pages SA801 to record UK property income on your SA800 Partnership Tax Return.
You use supplementary pages SA802 to complete your SA800 Partnership Tax Return if your partnership generated income from outside of the UK.
You use supplementary pages SA803 to complete your SA800 Partnership Tax Return if your partnership “disposed of any chargeable assets” (eg stocks, shares, land and buildings, business assets such as goodwill, etc).
You use supplementary pages SA804 to record savings, investments and other income on your SA800 Partnership Tax Return.
Responsibility for filling out and filing an SA800
By law, the partner nominated by the other partnership members must complete the SA800 Partnership Tax Return and either send it by post to HMRC or file it online using commercial filing software.
The nominated partner is usually chosen when the partnership is set up, but HMRC can choose someone if no one has been selected. If an SA800 Partnership Tax Return has been issued by HMRC in the name of a specific partner, they’re required by law to complete and file it.
Need to know! When reporting profit or loss, the split must accord with the terms of the partnership agreement. In most cases the share is the same for each partner, although it’s not always the case.
How to file your SA800 Partnership Tax Return
SA800 Partnership Tax Return filing deadlines
SA800 Partnership Tax Return late-filing penalties
If you don’t file your SA800 Partnership Tax Return before the paper or online deadline, whichever one you choose, each member of the partnership during the tax return period must pay a £100 penalty, unless you have a valid reason for being late.
If the partners still fail to file their SA800, each partner will be charged:
Need to know! You must complete the Partnership Tax Return in full. If you have a disability that makes filling in the return difficult HMRC can help you complete the form.
What happens after HMRC receives your SA800?
After receiving it, HMRC will process your Partnership Tax Return using the figures you have entered. If there are any obvious mistakes, HMRC will correct them and let you know. HMRC may also contact you if it has any queries over the figures you’ve entered.
HMRC has 12 months from the date of filing to check your SA800 Partnership Tax Return and any supplementary pages. It can ask you to provide accounting figures from which you took the figures you entered in the tax return. These can also be checked against your bank account figures.
All partnership members are responsible for the accuracy of their SA800 Partnership Tax Return. The partnership should retain records of all its business transactions. You must keep these for at least six years and show them to HMRC on request.
SA800: tax payment deadlines
The deadlines for paying your tax bill are:
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.
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)
Tuesday 4th October 2022 – 1:30pm – 4:30pm
Venue – Online
If you are accredited this will count towards your CPD hours, but the course is open to all.
Cost for SWLA members – £35 – Cost for non-SWLA members – £40
Course will cover –
Places secured upon receipt of payment, book your place through the office 01752 510913.
Course will be instructed by Stephen Fowler from Training for Professionals.