Implications of the new Debt Respite Scheme Regulations for Landlords

The Government has recently published guidance on a breathing space for debtors that will come into effect on 4 May 2021: The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. As a creditor, if you are told that a debt owed to you is in a breathing space, you must stop all action related to that debt and apply the protections. These protections must stay in place until the breathing space ends. There are two types of breathing space: a standard breathing space and a mental health crisis breathing space. Both have the same effect to prevent creditors from taking action to recover qualifying debts while the Regulations are in force. A standard breathing space is available to anyone with a problem debt and will give them legal…

New rules for IR35 and off-payroll working from 6 April

After postponements in 2019 and 2020, the 6 April 2021 is the third date scheduled for the off-payroll working rules to be extended to the private sector. The purpose of the change is to increase compliance with tax rules known as IR35. This change has implications for: medium and large private sector organisations using contractors and freelancers; contractors and freelancers who provide their services through an intermediary, such as a personal services company; and agencies supplying contractors who provide their services through an intermediary. Medium and large private sector organisations using contractors and freelancers who provide their services through an intermediary such as a personal services company will be responsible for assessing the individual’s tax status under the off-payroll working rules. ‘The vexed issue of employment status, namely whether an individual is self-employed or…

Protecting yourself from property fraud during the pandemic

Online fraud has boomed during the pandemic, with one police force reporting a 400 per cent rise in offences. While your home may not seem like an obvious target, more and more criminals are turning to property transactions because of the large sums of money involved. Here Holly Stevens, Head of Residential Property at Ware & Kay in York gives some advice on how you can avoid becoming a victim. Be aware of the different types of property fraud Research shows people often worry about credit card scams more than conveyancing fraud. This is despite losses from property fraud being much greater in value, with some customers struggling to recover their money. A bank may refuse a refund if it acted on genuine instructions, even if the customer was tricked.    If you are buying or…

Making sure you know the rules on how Estate Debts should be paid

If you are an executor of an estate, you may need to deal with debts that have been left behind. Any estate may have debts to be considered, even if the deceased was wealthy – it is reported that Michael Jackson died with around $500 million worth of debt. ‘Personal debts do not expire on death, they are carried over into the estate,’ says Sian Foster, Head of Wills & Probate with Ware & Kay in York. ‘It becomes the responsibility of the executors to make sure those debts are repaid.’ Impact of debts on beneficiaries Naturally, if an estate includes any debts this will mean that there is less to be distributed to the beneficiaries. However, the extent of a beneficiary’s disappointment will depend on the nature of the gift they are expecting as well…