Local accountants and tax advisers, Trueman Brown, warn landlords of the new tenant’s code of practice.
Landlords have suffered a lot recently because of the UK Government. Major changes have been made to the tax code surrounding the income received from renting out their properties.
Now landlords will also have to comply with a new Government Code Of Practice whereby since February 2016, landlords have also been responsible for ensuring that their tenants have a legal right to live in the UK.
Failure to comply will result in a fine of up to £3,000!
Requirements
The Code Of Practice states that: “Landlords must check the validity of the documents in the presence of the holder. This can be a physical presence in person or via a live video link, although in either case the landlord must be in possession of the original documents.”
In order to comply with this Code Of Practice, the landlord must:-
- Check that “ photographs and dates of birth are consistent across documents and with the person’s appearance in order to detect impersonation”;
- Check that “expiry dates for leave have not passed”;
- Check that “the documents appear genuine, show no signs of being tampered with and belong to the holder”; and
- Check that “the reasons for any different names across documents (e.g. marriage certificate, divorce decree, deed poll). Supporting documents should also be photocopied and the copy retained.”
With regards to the documents check by the landlord, the Code Of Practice states that:
“Landlords must make a clear copy of each document in a format which cannot later be altered,and retain the copy securely: electronically or in hard copy. Landlords must make a record of the date on which the check was made, and retain the copies securely for at least one year after the tenancy agreement comes to an end”.
Obviously, landlords should start complying with this Code Of Practice and put procedures in place to ensure compliance. If the landlord uses a letting agent, it would be wise to contact the agent to ensure that they have got the right procedures in place.
Local accountants and tax advisers, Trueman Brown, deliver necessary services to small business. Contact us if you require assistance.