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).

        Comment


          #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

          Comment


            #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.

            Comment


              #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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                #22
                A good note to end for me too. My tenant since has found that she is now eligible to receive funding via one of the government schemes and has decided that she can pay the rent in full "for the foreseeable future". Can't help thinking that my bombarding her with advice and info from this post along with multiple links to UC and government schemes may have helped her come to this decision.

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                  #23
                  I had one tenant unable to pay rent.
                  They're a tennis coach, so fair enough, no possibility of work.

                  Agreed to wait until they got some support - but they didn't qualify.
                  Missed two month's rent.
                  Paid the third month (when they could restart work) and the first missed month has just been repaid as well.

                  Intend to pay the rest off over the next couple of months.

                  Another decent tenant story!
                  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).

                  Comment


                    #24
                    Originally posted by loanarranger View Post
                    the implications of the economic ramifications associated with the Coronavirus and individuals potentially suffering through reduced income begs the question as to how Landlords should act in the unfortunate event that tenants genuinely cannot meet their rental obligations. I have my view that a conciliatory approach by accepting a “holiday” period would be permitted on the understanding that any Arrears would need to be repaid over six months once normality resumes. I accept that some might milk the situation but for long standing tenants who have always paid promptly there is to my mind a need to be seen to understand the unusual circumstances in which we all face and the bonus could be in retaining the goodwill of the tenant. Can I ask if others have considered what their actions will be should such difficulties exist with tenants.
                    A very understanding proposal. However, I have a landlord that took the complete opposite approach. It uses coronavirus to evict me on the spot. What's interesting is that landlord considers itself to be a very kind, compassionate and understanding to the needs of others.

                    Comment


                      #25
                      The Landlord cannot evict without going through the entire legal process. Unless the landlord has given the required notice and which was suspended because of Covid19 he/she must start the process including if necessary court action , that takes time . If you are unable to afford a solicitor then I would advocate going to the CAB for their help.

                      There was a program on BBC Radio 5 live at 23:00 on Tuesday evening when the entire issue of Rental Eviction was discussed at some length, you may be able to listen back on BBC Sounds

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                      • Reply to direct payment request
                        by OS7
                        Have you sent your evidence in. Try emailing - tpp.enquiries@dwp.gov.uk

                        write on the very beginning of the email that you have already completed the online form and you sending evidence in and explain your case to them.
                        12-01-2021, 10:11 AM
                      • direct payment request
                        by lavy
                        Hi I have a tenant on housing benefit who paid half of there rent that was due in October and , then no payment in November . When is the earliest I can apply for direct payments?. Do I have to wait and see if they pay when December payment is due which will then be two and half months rent in arrears...
                        01-12-2020, 16:12 PM
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                        by lavy
                        Hi Still no notification at all from universal credits after the application sent in for direct payments not even to say it has been received . Is this the usual from them or should they have sent out a notification . Just wanted anyone elses experience of dealing with a direct payment claim Thank...
                        12-01-2021, 10:00 AM
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                        by nukecad
                        That leaflet is for Housing Benefit - paid by the council.

                        You tenant's benefit is UC Housing Element - paid by the DWP.

                        As said above although they are both benefits to help towards rent they are very different, not least who pays them and so who you have to deal with....
                        11-01-2021, 03:45 AM
                      • Reply to direct payment request
                        by OS7
                        "If you can't take responsibility for the payment of rent, then the council can make payments direct to your landlord if there is a good reason to do so. If you're worried about taking this responsibility then you should talk to us about your concerns. Your benefit is for you to pay your rent...
                        10-01-2021, 18:44 PM
                      • Reply to direct payment request
                        by OS7
                        Yes, I agree, however I rather it stops and tenants realise their responsibility. I am already out of pocket, and tenants are not paying anyway!...
                        10-01-2021, 10:25 AM
                      • Reply to direct payment request
                        by nukecad
                        It's actually not Housing Benefit (paid by the council) - It's Universal Credit Housing Element (paid by the DWP).
                        Although they are both benefits towards rent they are very different things.

                        UC-HE is a benefit entitlement set out in law, and capped at certain rates for a private...
                        10-01-2021, 00:39 AM
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                        by OS7
                        I agree that benefits will not stop, due to the complaint, and any back arrears will be paid via housing benefits to tenants at some point. my tenant is getting just over £1000 for 4 bed detached house and 2 dependent children. I am not so sure how it is worked out. however it is made up housing benefit...
                        09-01-2021, 18:35 PM
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                        by nukecad
                        That is possible if they were entitled to the 4 bed LHA rate in some London boroughs.
                        Benefit towards housing costs in rivate rentals are capped at the LHA rate for a particular area.


                        That is totally incorrect, it the claimant has a liability to pay rent then the claimant is...
                        09-01-2021, 16:38 PM
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                        by OS7
                        Yes jpkeates, they may not cover the existing rent arrears (and this needs to be sorted separately), but at the very least they know that rent arrears are there because rent wasn't paid, even when the tenants were claiming it in benefits. I read the leaflet that the housing benefit team sent - and it...
                        09-01-2021, 12:49 PM
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