Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Markb " at "01/03/2016 - 22:24":

What's the big deal with abolishing W&T?
It's ONLY FOR FULLY FURNISHED
REPLACED BY ACTUAL so more paperwork, but could be higher.

The 10% fixed discourages the money actually being spent.

Reply to the comment left by "Jim Taliadoros" at "02/03/2016 - 09:03":

The 10% allowance is to be abolished and you are correct that receipts are still accepted. In my case these receipts will be lucky to come to 1% of rent. The 10% allowance was a perk which allowed me to keep rents to the LHA rate. No longer can this be so.

Reply to the comment left by "Jonathan Clarke" at "02/03/2016 - 10:53":

Another matter that the cruel tax avoider, some think evader with his own £1m 'Little' scam, is the effect on LHA recipients forced out.

On radio yesterday, Biffa say the number of rough sleepers FOUND in bins being emptied has increased 5 fold over last two years.

How many dead bodies are in landfill, never discovered?

http://www.biffa.co.uk/wp-content/uploads/2015/05/Streetlink_CIWM_Biffa-Research-Report-Final_Feb14.pdf

Surely in a civilised Society we can do better?

DO YOU CARE GEORGE?

Following on from the rent rises comments, Tessa makes some excellent points in commenting on the DIGS article.

http://www.landlordlawblog.co.uk/2016/02/29/why-do-landlords-refuse-to-let-to-housing-benefit-dss-tenants/?inf_contact_key=b5c43048723366a7163aa4acac2aa785f265e878814085cc9dc8f73dbce24e9b

As she says, we are not a charity.

Reply to the comment left by "Chris Byways" at "02/03/2016 - 13:31":

No big deal but that 10% W&T was part of the monies I received to live on. Now I wont receive them! Supose what was left of W&T was 50% of my income now I have a dilemma. ... Moreover I will now have to pay 45% tax on those 10% W&T monies. I am not moaning I am simply pointing out that if I have to give it to the government I have to take it from the tenant because I don't earn an extravagant amount but I am used to earning it and I need to earn it. So if I have to give 45% to the government then of course i need to take it from the tenant. No big deal just a terrible shame.

Personally, the W&T Allowance was a no-brainer although with multipke properties and voids does exacerbate the tax calculation.

Overall I think it's removal and replacementvwith full relief on expenditure WOULD be better if that is what we have but the new relief appears to be only for replacement (i.e. not the first expenditure) and there is no transition arrangement for those who have actually spent recently, a gross injustice.

Reply to the comment left by "money manager" at "02/03/2016 - 16:11":

How one ran and claimed the 10% is the staring point for what one will do going forward I guess.

I would look at / inspect the items subject to were and tear frequently. so there was a time element in me doing that. If a repair was required or a "stitch in time" needed I would go off and get the parts and then come back and repair or take down and take off for repair. If I saw an item in a sale or on gumtree I would buy it, collect it store it repair it and install it. For instance, rather then by crap, I would buy nearly new beds that cost £2,000 new for £200 - that were fine but that were no longer needed. Again I would buy, collect, clean, repair, store, and install.

With carpets I would clean them myself to make them last longer and look better. When replace,went was necessary, I would clear the rooms clean, repair, collect the carpet and make ready for the carpet fitter and then replace the furniture and all when fitted and I would clean up and take the all of the rubbish and dispose of it afterwards, weather that is a kitchen bits of a bed or carpet or curtains or a fridge etc.

I would buy Ikea furniture collect it build it and install it.

The reality is that the costs of the W&T item is probably about 20% of the real costs!!!

Of course, I will now need a receipt from the bed seller or my tenants will be back on £80 crap beds like mots tenants are. Do you give receipt when you sell on e-bay and gumtree?

Whichever way I but the actual W&T item, I will have a costs of inspecting, buying, collecting, storing and installing, over and above the marginal costs of the item,

I invested all of my time and did all of my bits so that the tenant got the best available and so that I could "earn" what was left of the 10%. If I could keep the places great and only actually pay out 1% of rents to achieve that then the 9% left over was mine. - It was not money for nothing but for being a good time and rescuers manager. I always knew that in the event of a high cost year or item then I would get less of the 10% to keep and that was the fair balance in my mind.

What I will do now, is at arms length, instruct my limited company to do take care of the Wear and Tear audits and works for me. I can not and will not do it for nothing. I will have my limited company take over my storage units and charge me for it plus a management fee I guess. My limited company will do all that I did but will charge me £35+ per hour plus costs and disbursements or whatever is the going rates are for that type of work and service. That will of course include all contemplation and buying time and all things that I have done myself until now.

My time and savings are the things that the anti 10% brigade think is what I should do for free... Yea... that ain't happening!!!

Wear and tear I'd never heard of funnily enough untill budget despite 15 years of being a landlord ( surprised at my accountant )

But I really believe it is a tiny problem compared to clause 24 pretty insignificant compared to that issue to be honest

Reply to the comment left by "Markb " at "02/03/2016 - 17:32":

I keep my cost down by making my own furniture, primarily beds, at a cost of £35 each. Beds which will stand 20 tenants bouncing on them and still survive. None have ever been broken and only one ever stolen for they are heavy (four man lift). The stolen bed was recovered from the ex tenant who escaped prosecution.

10% for me was a perk and I lament its loss but as NW says insignificant compared to C24 tenant tax.

Reply to the comment left by "Gareth Wilson" at "28/02/2016 - 19:04":

Hi Gareth

Mark A has published a complaint at http://www.property118.com/complaint-to-the-bbc-on-reports-concerning-tax-changes-for-landlords/85050/

An official complaint has been made to the BBC. I would encourage everyone to do the same. The fourth comment on the first page of the above thread describes how to.
You don’t need to give any personal details. The more people who complain, the less easy it will be for them to ignore it.