The ever-changing legislative landscape is time-consuming for landlords to memorise and comply with. With the new year comes new legislation to abide by, so here is our 2022 Lettings Legislation Guide to help you as a landlord navigate the changes.
The Government has implemented many COVID-19 centric regulations over the past two years. As the nation has vaccinated against and learnt to live with the virus, many of these regulations have begun to be phased out, such as changes to eviction notices.
2022 will see right to rent checks return to normal. In addition, landlords and letting agents will need to start digitising for Maxing Tax Digital. Energy is also a big subject for households across the country, and landlords need to tackle any amendments to the minimum energy efficiency standards.
Perhaps the most notable tab to keep an eye on this year is the Renters Reform Bill, the white paper of which is expected to be revealed in the coming months.
February is when the Government will announce how much the energy price cap will be. The increase will take effect on 1 April, and bills will increase accordingly.
The Coronavirus pandemic has limited face-to-face encounters in the property market over the last two years. To keep the property market moving, temporary measures were put in place to permit right to rent checks over video despite the restrictions. This also included sharing photocopies or emails of documents, such as passports and driving licenses, rather than the originals.
The Government has made it clear it is looking to create a digital system for all checks. A system similar to the EU and EEA could be looked at. This gives renters a sharable code to prove their right to rent, which can be shared between letting agents and landlords.
The Government’s plans to make HMRC “one of the most digitally advanced tax administrations in the world” means that landlords and letting agents will have to play their part. All landlords and letting agents registered for VAT will be required to sign up to Maxing Tax Digital.
Digital VAT records need to be kept, and software packages must be used to submit them. A full list of of the relevant software can be found on the Government’s website.
When it comes to legislation, the key is to be forward-thinking. With the number of changes set to take place this year, and the inevitable proposals that will be brought forward as well, there are also some key legislative points to note beyond 2022.
Businesses that are regulated for anti-money laundering (AML), will have to adhere to the Economic Crime (Anti-Money Laundering) Levy. The levy will be charged based on companies that are registered between 1st April 2022 and March 2023, meaning the first payments will be due from 1 April 2023. The fee will be fixed but will depend on the size of your registered business.
Income and expenses will need to be submitted digitally four times annually in 2024. This will apply to businesses who are registered for Income Tax Self Assessments and with an annual business or property income above £10,000. Allowances and adjustments will only need to be submitted once per year.
The key to being a successful landlord and portfolio property investor is to know the legislation guiding our industry, inside out. Of course, knowing the legislation, complying with the legislation, and educating yourself about the changes to legislation, are all heavily time-consuming.
We know how precious your time is, and that is why we can handle the legislation knowledge and compliance on your behalf. If you would like to discuss the possibility of taking back control of your time and having your property and legislation managed for you, get in touch with an experienced member of our lettings and property management team.
