If you have tenants in your properties that claim Universal Credits, then it is important to know about the change in the payment process which is being proposed. The changes will apply to any new applications for rent arrears payments.
If you already have tenants that are in the system, then the existing process will continue.
Under the current procedure Direct Rent Payments are made via bank transfer using the Apply for a Direct Rent Payment (ADRP) forms seven days after the claimant’s assessment period ends.
However, Rent Arrears Payments are done via the landlord being assigned a creditor reference number from the Department for Work and Pensions with payment made up to nine weeks after the rent arrears claim.
The change that is being proposed will make payments quicker so should benefit landlords. The Rent Arrears Payments will be calculated at the same time as the Direct Rent Payments.
The new payment process will be introduced in February 2022 across the UK.
We hope you found this update useful. We work closely with landlords and property investors, helping them plan and manage their finances.
We have recently partnered with a Property Finance Platform called Hammock which helps landlords save time and money. If you are interested in finding out more, look at this information on our website – Property Finance Platform.
Or contact us by calling 01623 490 120 or by email This email address is being protected from spambots. You need JavaScript enabled to view it.
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
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