Gwent Landlord Forum – 26 September 2017

Gwent Landlord Forum

Tuesday 26 September sees the start of our new season of Landlord Forums and we have a full programme of both interesting and relevant speakers presenting to our guests over the months ahead.

Although the day has changed (from a Wednesday to a Tuesday) and it has returned to just Rubin Lewis O’Brien and Green & Co Accountants as your hosts, it is still a 6pm start and still at The Parkway Hotel in Cwmbran.

As always, our invitation goes out to all who may be interested in attending this FREE event. So if you know someone who is a landlord or thinking about becoming a landlord, please do pass this invitation on to them – we are always happy to welcome new guests.

Speakers

Our confirmed speakers for this event are the South Wales Fire and Rescue (Home) team and Electrical Safety First.

Both presentations are extremely relevant in light of the tragic events not so long ago in London.

This is an opportunity to hear from the experts about potential dangers in your properties and ask the all important questions to put your mind at rest.

South Wales Fire and Rescue (Home) team
  • Covering home safety and how to reduce fire related injuries and deaths
  • Demonstration of risk reduction products
  • Fire Safety Legislation in all buildings other than single domestic premises
Electrical Safety First
  • Safety in the home
  • Fires caused by electricity in Wales
  • Horizon scanning (Renting Homes Act and electrical safety)
  • Misuse of electricity by tenants

Eventbrite - Gwent Landlord Forum

For any enquiries about this event, please contact Katie Williams at Green & Co on 01633 871122, Email: katie@greenandco.com.

Landlords Kept in the Know as Renting Homes Act Moves Forward

Neil Soundy and Daniel Bellis

The South Wales Argus highlight another successful Gwent Landlord Forum.

Landlords from across south east Wales have again received expert advice, support and insight into the ever-changing rental landscape as part of the bi-monthly Gwent Landlord Forum.

The event, held by Cwmbran-based Rubin Lewis O’Brien, Green & Co Accountants and Tax Advisors and Lettings agency SerenLiving, took place at the Parkway Hotel.

Two guest speakers gave informative presentations to a packed room, where landlords were informed of the ins-and-outs of operating as a limited company, AIRBNB and the Renting Homes Wales Act.

Opening the evening was mortgage advisor Neil Soundy, who spoke about the benefits of buying property as a limited or trading company, the basic taxation on limited companies and buy to lets, lower rental coverage requirements and AIRBNB for landlords.

The second speaker was Daniel Bellis, a policy officer for the Residential Landlords Association. Daniel discussed the growing concerns of landlords as the Renting Homes Wales Act has come into effect, including the creation of standardised contracts across the rental sector, fit for human habitation regulations, changes in abandonment procedure and changes to joint contracts.

Ed Gooderham, director of Green & Co Accountants, said: “It’s great to see the forum grow with more and more people attending every session. Both speakers were of great quality, providing our landlords with an informative insight into complex topics. Our continued aim is to provide local landlords with as much information and support as possible, and attendees regularly feedback to us how much they enjoy these events.”

The next Gwent Landlord Forum will take place at the Parkway Hotel in Cwmbran on Wednesday July 12. For more information, please contact Rubin Lewis O’Brien, Green & Co or SerenLiving.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Commercial Tenancy Forum Launches

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Last weeks edition of the South Wales Argus features an article on our new Commercial Tenancy Forum.

Organisers of the Gwent Landlord Forum have launched a sister-event aimed at the commercial market.

The first Gwent Commercial Tenancy Forum will be held at the Parkway Hotel, Cwmbran, on Tuesday 20th June from 6.30-8.30pm. The event will inform local business owners who currently rent their commercial premises to keep up-to-date on the latest tenancy legislation.

Cwmbran-based Rubin Lewis O’Brien and Green & Co Accountants and Tax Advisors are behind the successful residential event.

Sam George, Managing Partner at Rubin Lewis O’Brien, said: “We’re really excited to launch the Gwent Commercial Tenancy Forum and we hope that it will continue to build on our already successful residential landlord forum.

“This is set to be a fantastic opportunity for commercial tenants to learn of the support and funding that is available to them. We aim to ensure both tenants and landlords are fully informed on all aspects of commercial lettings.”

The guest speaker will be Andy Harvie, Director of TPG Consulting, a group of Chartered Building Surveyors who offer property professionals expert advice on all building and property related matters. Mr. Harvie’s range of experience has seen him offer solutions to clients with complex requirements, his talk will focus on the the dilapidations of commercial properties.

Mr George continued: “We are keen to continue informing both commercial tenants and residential landlords that there is available support to all parties. Andy is an experienced and knowledgeable professional who will be able to help those in commercial lets understand the continually changing policies and the potential financial implications.”

Please contact the organisers directly for tickets to the free event, or register online:

https://www.eventbrite.co.uk/e/gwent-commercial-tenancy-forum-tickets-34570251553

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

First Welsh Landlord Fined Under Rent Smart

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A Welsh landlord was the first to be fined last week under the new housing regulations in Wales.

Appearing before magistrates in Newport, charges were brought against him which included failing to register a property of multiple occupancy.  Since November 2016, all landlords must register and declare multiple occupancy properties with Rent Smart Wales, as well as undertaking training to ensure they are aware of their obligations under the legislation covering rental properties.

The property owner in question was fined a total of £4,550 covering numerous offences under the Housing (Wales) Act.  A representative from Rent Smart has called the prosecution a “milestone” and says it sends out a message that non-compliant landlords cannot continue to ignore the regulations without penalty.

Those who haven’t already done so are urged to come forward and register now to avoid falling foul of the law.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Gwent Landlord Forum – 31 May 2017

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2017 is flying by and changes to Landlord regulations seem to be keeping pace. So we would like to invite you to attend the 3rd Gwent Landlord Forum of this year, taking place on Wednesday 31 May between 6pm and 8pm, at The Parkway Hotel and Spa.

As always, our invitation goes out to all who may be interested so if you know someone who is a landlord or thinking about becoming a landlord, please do pass this invitation on to them – we are always happy to welcome new guests.

Speakers

Neil Soundy of Neil Soundy Financial Services Limited will be talking about:

  • Buying via Limited Company/Special Purpose Vehicle (SPV)/Trading Company.
  • Lower rental coverage requirements via Limited Company/SPV.
  • Buying Multi Unit Block or HMO.
  • Basic taxation on Limited Company Buy To Let (BTL)
  • Use of Tenancy in Common on existing personal BTL’s
  • Possibility of transferring existing personal BTL’s to Limited Company.
  • Airbnb for landlords

Daniel Bellis, Policy Officer with the Residential Landlords Association (RLA) will be speaking about:

  • The Renting Homes Act and how they are creating standardised contracts across the rental sector.
  • He will also cover other changes, such as Fit for Human Habitation regulations, changes in abandonment procedure and changes to joint contracts.
  • With over 20 different regulation still to finalise before landlords start using the new system, a lot has already changed since the Act was first passed.

Eventbrite - Gwent Landlord Forum

For any enquiries about this event, please contact Katie Williams at Green & Co on 01633 871122, Email: katie@greenandco.com.

Mates Rates – Letting your property at below Market Value

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When you let a property to a third party for a market rent it should be relatively straightforward to calculate your taxable rental income, or loss if applicable. A market rent is that which a landlord can expect to receive in accordance with rents charged for similar properties in the same area. If your rental income exceeds the allowable expenditure incurred the profit will form part of your income and if the allowable expenditure exceeds the income then, assuming you meet all criteria, you will have a loss which you can carry forward and offset against future rental income.

There are some circumstances where a market rent is not charged. For example, a parent may let a property to their child for a lower amount, as parental duty dictates.  In this instance the expenses incurred, such as mortgage interest, landlord insurance, etc., may be greater than the rent received. If this is the case, then the expenses are not sustained wholly and exclusively for business purposes and in strict terms should not be claimed. However the good people at HMRC do allow expenditure to be claimed up to the value of the rent received, therefore resulting in no profit no loss. As a result, however, any actual ‘loss’ will be lost.

Should you have any Landlord tax queries please contact Green & Co on 01633 871122.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Landlords: Is your Tax on the Up from April 2017?

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From 6 April 2017 the relief that Landlords receive for mortgage and loan interest on residential lettings will be restricted. It marks a big change for Landlords as it is estimated that one in five will be affected by the policy.

Under the new rules, by 2020/21, finance costs will no longer be deducted from the rental income received (thus giving relief at whatever rate of tax you pay); instead they will be subject to basic rate relief, currently 20%.

The changes will be brought in gradually so that the following proportion of interest costs will be relieved in the normal way in the respective tax years.

2017/2018                           75%

2018/2019                           50%

2019/2020                           25%

2020/2021                           Nil

The balance of costs for each year will be relieved at basic rate.

This change does not just affect higher rate taxpayers.  Some people may find that, even though they are currently a basic rate taxpayer, when the finance costs are no longer being deducted in calculating their net rent, they may be pushed into higher rate tax.  And relief is only available at basic rate.

HMRC announced this change in 2015 in order to give Landlords time to prepare for the impact. If you haven’t done this already then there’s no time like the present (meaning… act NOW!).

Contact us if you would like to discuss your situation with one of the Green & Co team.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Gwent Landlord Forum – 29 March 2017

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After our first very successful event of the year held in January, we are now well into 2017 and preparing to welcome our Landlords to our next FREE forum on Wednesday 29th March between 6pm and 8pm at The Parkway Hotel and Spa.

We are continuing to provide a broad range of speakers who can shed a light on important matters which might help you make up your minds as to your future as a property investor. As always, our invitation goes out to all who may be interested so if you know someone who is a landlord or thinking about becoming a landlord, please do pass this invitation on to them – we are always happy to welcome new guests.

Speakers:

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Leanne Flanagan, Tax Senior with Green & Co Accountants will be talking about:

  • The final March Budget taking place on 8 March and how the changes announced will affect you as landlords.

Damian Lines, Head of Wills, Trusts and Probate with Rubin Lewis O’Brien Solicitors will be speaking about:

  • All aspects of Estate Planning as part of the important area of Preparing for the Future.

Stephanie Taylor of HMO Heaven will be covering:

  • Her insider secrets on HMOs. Is now the right time to invest?
  • The 5 easy steps to massively increase the rental income on your buy-to-let properties.
  • Real life case studies demonstrating how you can double your rental income.
  • How to enjoy fantastic property cashflow in Newport without any hassle.

Eventbrite - Gwent Landlord Forum

For any enquiries about this event, please contact Katie Williams at Green & Co on 01633 871122, Email: katie@greenandco.com.

HMRC Update On Making Tax Digital

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Following a consultation period, HM Revenue and Customs have now released more information regarding the changes to self assessment under their new “Making Tax Digital” project.

Some of the more significant details are:

  1. Receipts and expenditure recorded on spreadsheets can be linked to HMRC software.
  2. Free software will be available to smaller businesses.
  3. The cash accounting system of reporting will be extended.
  4. Charities will not be obliged to take part in quarterly reporting.
  5. In the first year, a 12 month period of grace will be allowed before late submission penalties are applied.

Businesses and buy-to-let landlords with a turnover of more than £10,000 pa will be expected to submit their financial information quarterly, the new regime to be rolled in from April 2018. A spokesperson for the Revenue optimistically suggests this will help businesses avoid errors on returns and cut down the need for compliance investigations.

For many small businesses, however, the prospect of transmitting their financial information on-line every 3 months is not one they welcome. Recent research carried out by HMRC themselves showed that over 40,000 businesses had concerns about having to comply with quarterly reporting.

The Federation of Small Businesses (FSB) also warns that more vulnerable taxpayers will incur additional costs in software and/or increased accountancy fees and that HMRC’s plans to implement the system in 2018 is total “fantasy”. A survey undertaken by 1-Tap Receipts has even shown that a staggering 97% of self-employed taxpayers who took part were unaware of the proposed changes to the tax system.

With these factors in mind, the FSB is supporting a recommendation by the Treasury Committee for quarterly reporting to apply only to businesses with a turnover in excess of £83,000 (in line with the VAT registration threshold) and to be phased in gradually from 2020. This would give the Government a chance to re-think their proposals and tax-payers time to consider their options going forward.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.