Rental Arrears associated with Coronavirus

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    #16
    JKO you are indeed correct but clearly the Self Assessment has yet to be made so unless she jumps ahead and makes a provisional payment which would bring it below the threshold she disqualifies herself from the UC entitlement.

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      #17
      Oh, well then she needs to crack on with the tax return while she has time off work. Maybe she'll even have less to pay than she thinks, so will be able to pay her rent?

      BTW, there's a payment due 31st July, which is known. There's no reason that cannot be made, is there?

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        #18
        You can always pay tax on account - she should just make the payment.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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          #19
          Originally posted by kennyj52 View Post
          she is currently ineligible for UC because her savings are above the allowable limit as a consequence of saving up to pay her 2019-2020 tax bill
          You may want to inform your tenant that such savings are classed as a 'business asset' and disregarded for UC purposes.

          (It might also help if it's put into a seperate account specifically to cover future tax payments).

          In addition, questioned about the treatment of money set aside by the self-employed in relation to their liability for tax, Minister for Welfare Delivery Will Quince responded -
          '... we have given very clear guidance ... that money set aside for tax liability can be considered to be a business asset and therefore doesn't fall under the £16,000 savings rule.'
          https://www.rightsnet.org.uk/welfare...iversal-credit

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            #20
            Originally posted by JK0 View Post
            Oh, well then she needs to crack on with the tax return while she has time off work. Maybe she'll even have less to pay than she thinks, so will be able to pay her rent?

            BTW, there's a payment due 31st July, which is known. There's no reason that cannot be made, is there?
            It just occured to me that we probably all need to have a quiet word with our accountants when we submit our returns. Normally we have to pay an amount equal to half of our 2019/20 tax on 31/1/21 and half on 31/7/21.

            Now, certainly my 2020/21 income will be a small fraction of my 2019/20 income due to electrical upgrades, and tenants moving out left right & centre in fear of corona virus. If I have to pay the same amount in Jan & July next year, as my tax will be this year, I will be seriously short, albeit that I'll get it all back the following year.

            Think on guys.

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              #21
              Originally posted by philg View Post
              had a tenant ring me earlier in month and i agreed a reduction of about 40% as they are wonderful tenants , today i got a text to say they could pay the full amount !!! must say i was rather over the moon really , did not expect that and don`t think many would do that !
              wow - they are really wonderful tenants amazing

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