Free ‘Live Landlord Tax Webinar’ Covering Section 24 (New Tax Changes)

Over the past several months my inbox has been routinely infiltrated by landlords concerned over the fast approaching ‘Section 24’ tax legislation, which was announced in George Osborne’s 2015 Summer Budget. The piece-of-shit (unfair) proposal will restrict how much landlords can offset mortgage interest costs against profit, which ultimately means many private BTL landlords will see their tax bill go through the freaking roof!

Needless to say, folk are panicking, because for many of us the interest on mortgage loans is our biggest expense, and the main tax deductible expense which allows us to be profitable.

If this is the first time you’re hearing about all this, or if you’ve kept head buried in the sand hoping it would just go away… it’s time to wakey wakey!

While being ‘Mr Sensitivity’ is usually my strong suit, there’s unfortunately no way of sugarcoating the situation: many of you will be screwed, especially if you’re just going to ‘wait and see what happens

Update on current situation / overturning section 24

Some of you may remember I touched on the whole debacle last June, a couple of months after the budget was announced. At the time, a couple of, perhaps hopelessly delusional, landlords banded together, looking for support and donations to kick-start a legal process with the ballsy ambition of overturning the proposed ‘Section 24’ by a Judicial Review.

Credit where credit due, they certainly put up an admirable fight- they managed to get the backing of some moderately influential political figures and raised a smidgen over £100k. Not bad by anyone’s standards.

Alas, to date, those efforts appear to have been futile, because there’s been no real positive progress. Actually, that’s probably an understatement. Most significantly, back in October 2016, the High Court refused the Judicial Review. However, the fight doesn’t seem to be completely over, because as always with failing ‘movements’, there are inevitably a couple of loiterers that simply refuse to let it go. Good luck to them, sincerely. Regrettably, I can’t help but feel they’re the same as those optimistic piss-heads that crowd, harass and get rejected by the same women over and over. We’ve all been there.

While I was (and still am) in full support of the campaign, I have always been profoundly pessimistic about anyone or thing being able to stop the Tory Government from extracting extra ‘much-needed’ funds from our coffers. As I said at the time, Landlords are an easy target, especially while the vast majority of the ‘renting’ working-class despise us. The Government know exactly what they’re doing, and they’re well aware of the fact that there aren’t too many civilians worrying about us ‘poor landlords’. So my stance has always been simple and clear, and that is to prepare for the incoming surge in tax, as opposed to hoping and waiting for it to crumble.

As it stands, and as strongly expected, the incoming onslaught on our profits is still imminent.

Quick recap on what ‘Section 24’ means

  • The Government suggests 1 in 5 landlords will be affected.
  • Currently landlords can offset the interest paid on their mortgages against profit, that is going to be restricted.
  • The restriction will be introduced gradually from April 2017, and then fully implemented by 2020 – 2021.
  • The tax relief on mortgage interest will be capped at 20% even though you might be a higher rate taxpayer.
  • Lower rate tax payers may find themselves pushed into a higher rate of taxation.
  • This will mostly affect landlords with large mortgage debts, especially ‘portfolio’ landlords. It’s theoretically possible that some may find themselves paying more tax than they have actual income. Scary!

Will YOU be affected?

Meh, I dunno.

Maybe.

I hope not.

But probably.

At this stage, you really, really, really should find out if you haven’t done so already, and then make any necessary provisions. My advice is to talk to a specialist landlord tax accountant to find out how much of an impact Section 24 will have on your dwindling finances, and then plan accordingly.

If you already know that you’re about to get kicked square in the nuts, you may want to take a look at a few of my suggestions that may help limit the damage by absorbing and adapting to the changes. If you read through the comments, you’ll also see how other landlords have made provisions.

I’m not a Tax Specialist, but I know someone who is…

I’ve actually wanted to address the whole ‘Landlord Tax’ thing for a while; I’ve wanted to help the many concerned and in search of answers. But I’ve never felt so helpless, because I’m comically under-qualified to give any advise on Tax. I’m the human equivalent of a wet paper bag when it comes to the matter; zero integrity, and ultimately useless. My diagnosis and advise would probably lead to a tragic case of herpes… and a 90% increase in tax.

So, considering that i’m an impotent slosh of crap on the subject matter, I’ve had to call in the specialists… or to be more precise, allow them to temporarily snatch the microphone from out of my hands.

Register for the FREE Live Landlord tax Webinar

If you have no idea what is going on (i.e. unsure whether or not your empire is about to collapse in ruins), and you have no idea where to start, then this upcoming Landlord Tax Webinar is a cool starting point.

What the hell is a Webinar?

Good question.

You’ll essentially log into a secure area online, from the comfort of your own home (or wherever you want to be), where you’ll watch and hear a couple of angelic voices present a live presentation on your screen.

I actually co-hosted one a few years ago, which many of you attended, and it turned out to be pretty lively (well, as lively as a landlord webinar can be)! I naturally stole the show, while my co-host James made sure I remained hydrated by constantly keeping my glass filled with water. The feedback was awesome, but because they’re quite a bit of hassle to organise, coupled with my anxiety levels skyrocketing by the prospect of organising a party for only a handful of people to show up (my Mum, Nan and Aunt Doris), I probably don’t do them as often as I should. They’re generally incredibly informative, and an easy way of learning. Easier than reading through my drivel anyways.

Webinar schedule

  • The mortgage interest changes and how they will be phased in
  • Allowable expenses
  • Case studies showing the effect on a basic rate landlord and a higher rate landlord
  • What can landlords do to minimize the impact of the new tax changes
  • Other tax changes
  • Live Q&A

‘Listen Again’ for FREE – Online Landlord Tax Webinar

Landlord Tax Webinar hosted by Portfolio Landlord James Davis, Upad CEO, and Raj Jiwani, Chartered Tax Advisor at Charter House Accountants.

When? Thursday 23rd March, 7:30pm – 8:15pm

Why? It’s FREE and you’ll receieve a load of useful info

Listen again! The Webinar is over, but you can listen again…

LISTEN AGAIN!

When?

Thursday 23rd March 2017, 7:30pm – 8:15pm

Yes, it’s going to be a real quick in-and-out affair, and extremely pleasurable! And yes, I know Thursday night is the ‘New Friday night’, so it’s not ideal for the social cats and party-people among us! To be honest, I’m not going to try and sway your schedule, because if I wasn’t organising this gig, I’d have a terribly hard time superseding a ‘Landlord tax webinar’ over getting shit-faced and trying it on with countless women, until I stumble upon one that is equally as shit-faced and free of inhibitions. So you’ll get no judgement from me if you decide to swerve the webinar, even if it does end up costing you thousands of extra on tax.

Who will the Webinar be suitable for?

I don’t want this to be a total flop. It’s going to be ridiculously embarrassing if I only manage to muster together 5 viewers- so it’s primarily for anyone that has a heart!

Perhaps not as importantly, but it’s also for every UK based landlord that wants to know more about their tax liabilities, and especially the incoming Section 24.

Lastly, it’s also open for anyone that wants to join in. Although, it would be weird if you weren’t a Landlord. Then again, I once sat through a Webinar on breeding chickens with no apparent interest. Don’t ask.

Who will be presenting the Webinar?

Don’t be fooled by the smug faces… You’ll be in safe and super qualified hands…

Tax Webinar Hosts

Left: Portfolio Landlord James Davis, Upad CEO.
Right: Raj Jiwani, Chartered Tax Advisor at Charter House Accountants.

Is there anything in specific you want covered?

I’ve made it clear to James that I want this Webinar to be about YOU receiving value, so I want you to get the information you want. As the schedule says, you will have the opportunity to ask questions during the live Q&A. However, I want to take this opportunity to know whether or not there is anything in specific relating to Landlord Tax you want to know (it doesn’t just have to be about the new incoming tax changes). If you let me know in the comments below (by Wednesday), I will try my best to get the issue covered. If there’s enough demand for a particular issue/scenario, there’s a good chance it will become apart of the preliminary schedule, in which case Raj and James will have time to craft together the best possible response.

But please bear in mind, if your question is overly complicated and specific, it’s more than likely that it will either get squashed like a bug or answered generically so everyone can benefit. In any case, I will try to do my best for you!

100% Free

I just want to clarify, there is NO fee. It’s 100% free and you will have no obligation to buy, smoke or sniff anything. The purpose of this webinar is for you to be enriched with information and ultimately give you some guidance.

Even if you register to attend, you don’t actually have to attend. There’s no penalty, besides from utter shame and disappointment.

Fair warning / Upad Discount Codes

While this Webinar is 100% free with zero obligations and comebacks, it is organised and sponsored by Upad (the Online Letting Agent), and that inevitably comes with some unavoidable and shameless Upad self promotion, which I’ve had to agree to in order for this to happen. Bear in mind, a Tax Specialist & expert Portfolio Landlord is going to be on hand to provide advice, and this is all completely free. But rest assured, I’ve put conditions in place to suppress and limit the amount of promoting that can be done.

If I was qualified enough to host the webinar and give you the answers, there’d be zero promoting, and I’d probably pay YOU to come. Pennies & peanuts, mind you, but you would still get paid.

So, just to be clear, there will be a light introduction to Upad… and you’ll receive a couple of exclusive Upad offers and discount codes at the end of the Webinar (whether you use them at any point is entirely up to you). I’ve been assured that it is, which means 99% of the Webinar will be about you, Landlord Tax & Clause 24!!

Sounds fair enough? Cool.

‘Listen Again’ for FREE – Online Landlord Tax Webinar

Landlord Tax Webinar hosted by Portfolio Landlord James Davis, Upad CEO, and Raj Jiwani, Chartered Tax Advisor at Charter House Accountants.

When? Thursday 23rd March, 7:30pm – 8:15pm

Why? It’s FREE and you’ll receieve a load of useful info

Listen again! The Webinar is over, but you can listen again…

LISTEN AGAIN!

Feedback

If you actually do attend the webinar, please provide your feedback in the comments section below, so I know whether or not I should do them more regularly, and what can be improved.

So, are you going to register or what? If you have any questions about the Webinar, let me know. And don’t forget… if you have any specific questions you want answered during the webinar, drop a note below and I’ll pass it on to the powers that be.

Go register. Now! xoxo

30 Comments- Join The Conversation...

Guest Avatar
Caroline 20th March, 2017 @ 06:47

I am not available Thursday evening. Will we be able to watch the webinar at a later date ?

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Chris 20th March, 2017 @ 07:04

I am also not available and would like to watch it or have a transcript please

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Nic 20th March, 2017 @ 07:41

I only have one property, with no mortgage. It's my pension plan; bought in Dec 2016, tenant moved in last month.
I have no other income apart from child benefit (I'm a full time mum) and my total income from rent and child benefit will be under the tax threshold.
Am I still supposed to complete a tax return even though I am under the tax threshold? Thanks

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David 20th March, 2017 @ 08:51

What makes this tax change SO stupid is that it will be passed on to tenants at a time when there is already short supply and the cost of renting is already at such a high level that it is distorting the economy.

I do understand the idea that the Gov does not want to give a tax break to Landlords that it does not afford other property owners.

The proposed solution by the Government was to move properties into a company and that would be fine, except it would attract eye watering tax.

I think the campaign SHOULD have been about giving Landlords a break on the Stamp duty for the "transfer" of the property to a limited company that has 100% ownership by the same owners as at present with no sale of the company shares allowed for 2 years.

Of course this might present problems for the landlord because the new company would need to get new mortgages which would cost thousands in arrangement fees.

I spoke to a friend who has a number of flats, he told me he has a plan, I asked him to elaborate and he would not go into detail, he said suffice to say that it involved offshore companies and would take tax revenue away from the Government, way more than he would be losing by this.

He said that when a tax is unfair people will do all they can to avoid it, his attitude is that if the Government does not want to play fair why should he.

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The Landlord Avatar
The Landlord 20th March, 2017 @ 09:14

@Caroline, @Chris and to anyone else that wants to attend but can't make it...

If you register you will get emailed a link to the recording of the Webinar afterwards!

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The Landlord Avatar
The Landlord 20th March, 2017 @ 09:16

@Nic

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

You’ll need to send a tax return if, in the last tax year:

you got £2,500 or more in untaxed income, for example from renting out a property or savings and investments - contact the helpline if it was less than £2,500

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Benji 20th March, 2017 @ 09:24

For Raj;

AIUI, The 'only 1 in 5 landlords affected' bullshit comes from a HMRC back of a fag packet calculation based on the number of higher rate tax payers currently declaring property income.

It is calculated on the number of individual landlords not the number of properties.

It doesn't include those pushed into a higher rate, those currently making a loss or just breaking even, those losing benefits, kids affected by student loans etc.

Can Raj come up with an accurate estimate of number of rental properties affected? (please show working!).

Failing that, just his best guess.

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Lisa 20th March, 2017 @ 10:31

I am a new landlord with 2 properties and 40k interest only mortgage on one. I need to know how to register and declare income, what legitimate expenses and allowances can be offset, national insuance payments etc.

Expected annual income 16800 total less agency fees 1400 p/a
fully furnished,
gas certs, plus??? £300 p/a
£1200 mortgage interest only. P/a

It will be only income.

The new budget confused me......

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The Landlord Avatar
The Landlord 20th March, 2017 @ 10:35

@Benji
Noted, and your question will be passed on.

The 1 in 5 landlord thing never made sense to me. Purely based on speculation, I'd assume that way more than 1 in 5 landlords are above the tax threshold and paying interest on loans!

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The Landlord Avatar
The Landlord 20th March, 2017 @ 10:36

@Lisa
You need to do a self-assessment to declare your income: https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

The rest of your questions will be addressed in the webinar :)

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Guest Avatar
Tom 20th March, 2017 @ 10:55

Hi
Thanks for all your work for landlords. It's much appreciated.
Could you possibly ask the webinar team how the new tax rules will be married up to the Making Tax Digital lash up as landlords are in the front of the firing line for that too. As usual in this country, someone's had the idea for their career progression and it's other poor sods that have to make their nonsense work.

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Allan 20th March, 2017 @ 11:26

Great idea and good timing. May the webinar cover the option of moving BTL property from "tenants-in-common" to Limited Liability Partnership as a step toward full transfer to Ltd Co, with specific reference to tax implications relating to LBTT and CG.
Also the use of Declaration of Trust and HMRC Form 17 to move income between married tenants-in-common from 50/50 to say 90/10 in favour of lower rate tax payer, and any implications in terms of mortgage/Land Registry.

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The Landlord Avatar
The Landlord 20th March, 2017 @ 11:44

@Tom & @Allan.

Thanks, guys!

Noted, and I'll pass on your questions :)

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Guest Avatar
Lisa P 20th March, 2017 @ 15:26

Hello, also not available at that time but would love to watch this if it is being recorded? Thank you

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The Landlord Avatar
The Landlord 20th March, 2017 @ 15:28

@Lisa P

Hiya! If you register you will get emailed a link to the recording of the Webinar afterwards! :)

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Kate 20th March, 2017 @ 16:11

I've largely made my peace with the major tax changes already, given that the banks were such utter arsed on the last property I bought that I funded it by remortgaging my own flat, so was only getting minimal benefit from interest on another property anyway. Turns out I was accidentally lucky, who knew.

Anyway I am interested to hear about it, and you asked for request for related tax things to be covered, here's my top two:

1) allowable expenses. Where should I look for tricks I might be missing? If I move furniture into storage cos new tenant wants unfurnished, can I claim the storage costs?

2) in general, is there any way of getting some tax back against the time I put in when I manage my own properties? (I'd rather set my hair on fire than use any more agents). For example, I have a personal Ltd company - could I invoice myself for management time from the Ltd co ?!

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The Landlord Avatar
The Landlord 20th March, 2017 @ 16:15

@Kate
haha, that's fate if I ever I've heard...! Nice one!

Good questions!! I'll pass them on.

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Rachel 20th March, 2017 @ 19:35

Hello,
The registration form pop-up has a title but no form, so I haven't been able to register. Tried it in a different browser and had the same problem. Any ideas? Thanks!

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The Landlord Avatar
The Landlord 20th March, 2017 @ 21:39

@Rachel
Hiya! No idea what the problem is, to be honest. I've tried it on my laptop and 2 different desktop PC's and it all seems to work fine. Also, there's been a lot of registrations so far.

Are you running an adblocker or something (even though it's not an advert, it may cause issues)?

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Martyn Gruneberg 21st March, 2017 @ 20:12

Looking forward to the webinar. So far I've been able to learn a lot about managing my own property, however taxes are the only bit I'm really only worrying about, everything else as a landlord I've loved learning about.

I understand everything to do with the new relief changes coming into effect, but what I want to know is how easy it actually is just to learn the whole return process yourself like everything else? Is there anything complicated involved that the acquisition of a professional is necessary?

Do I need to buy software that HMRC rave about to be able to actually complete it online? Or is it a simple as filling out a sheet on your HMRC account with all your data and numbers once you've logged in?
I was confused about that bit.

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Sean Bishop 21st March, 2017 @ 23:23

What do you need for the webinar? Do you need a microphone and/or a webcam? If you have neither how can you participate?
As an afterthought, is it one of those Skype things?

Thank you

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Gary T 22nd March, 2017 @ 10:05

Interested to understand/confirm if the S24 new tax changes only apply to 'interest' or if they apply to the 'other financial costs' under the tax category 'Loan interest and other financial costs'
If just interest, are HMRC likely to split that category into the two respective parts

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The Landlord Avatar
The Landlord 22nd March, 2017 @ 16:46

@Sean
Just speakers, that's it :)

It will be kind of like a Skype conference call, but only difference is, you will see a slide presentation with Raj and James talking over them.

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The Landlord Avatar
The Landlord 22nd March, 2017 @ 18:23

@Gary
As per the Gov website (link):

This measure will restrict relief for finance costs on residential properties to the basic rate of Income Tax.

Finance costs includes mortgage interest, interest on loans to buy furnishings and fees incurred when taking out or repaying mortgages or loans. No relief is available for capital repayments of a mortgage or loan.

Landlords will no longer be able to deduct all of their finance costs from their property income to arrive at their property profits. They will instead receive a basic rate reduction from their income tax liability for their finance costs.

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Adie 25th March, 2017 @ 17:25

I'm so gutted... my phone's been acting up so I've only just come across my email about this webinar! Even though the webinar's already aired, can I still receive a link to the recorded webinar if I register after the fact please?

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The Landlord Avatar
The Landlord 26th March, 2017 @ 16:10

@Adie
Ahh that's annoying, sorry to hear that.

I'll find out and let you know tomorrow. Please bear with me!

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The Landlord Avatar
The Landlord 27th March, 2017 @ 09:36

@Adie,

You can listen again by following this link...

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Benji 27th March, 2017 @ 17:00

Raj, 22:30 "The upside to most landlords on this webinar today is that you'll be able to deduct £1000 in expenses against your rental income going forward."

I don't think that is correct (unfortunately);

https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income

It will also not apply, if the alternative method is not elected, but instead the actual allowable expenses are deducted.

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andrewa 18th April, 2017 @ 18:02

Everyone who uses this site for landlords IS GOING TO WRITE to the prime minister and tell her they and anyone else they can persuade to are going to vote labour due to the unfair removal of mortgage interest as a claimable business expense. AREN'T YOU?
If you do not then don't continue to complain about unfair taxes!

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Simon Pambin 19th April, 2017 @ 08:57

It would be a waste of a stamp. In the context of the bigger political picture a few landlords' votes can safely be ignored and, in any case, I can't really see the Labour party being the saviour of the private rental sector.

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