04/10/2021 - CruseBurke

What Is HMO? A Basic Guide for Beginners

George04/10/2021Finance , Landlord , Property

The landlords can have more occupants and earn more rental revenue by letting an HMO (House in Multiple Occupations). However, there are many rules and responsibilities like minimising size requirements, overcrowding, and licensing to HMO landlords. To know more about HMOs’ responsibilities, read this blog till the end. Talk to one of our chartered accountants in Croydon about the online accountancy services we provide. We are just a click away! If you want our service of managing HMO and its tenants, then feel free to contact us! What is HMO (House in Multiple Occupations)? It is a property that has three or more people who do not form a single household and typically share one or more bathroom, toilet, or kitchen facilities. According to the government, the households include singles, married or civil partners (couples), and carers & foster parents. For instance, three people who do not relate to each other in three rooms will make up three households, whereas a property with two couples (married or civil partners) will form two households. HMO can normally take the following forms: A guardian occupied property Shared houses Guesthouses Hostels Residential care homes Certain bed and breakfast establishments Bedsit accommodation Houses let to lodgers The Responsibilities for Letting an HMO As a landlord, you are required to fulfill your legal liabilities even if you let an HMO. These legal responsibilities include meeting energy efficiency rules and protecting deposits. However, the following are some additional responsibilities of the landlords of HMOs such as: Carrying out a gas safety check annually Ensuring the property is not overcrowded Maintaining as well as repairing facilities and communal areas Providing washing and cooking facilities and enough waste bins for many tenants in the property At least once every five years, checking the electrical installations Ensuring the fire risk assessment is conducted properly Installing heat detectors in kitchens and smoke alarms; hence, proper fire safety equipment should be installed. Our accountants at CruseBurke are qualified and cost-effective! We save your time, money, and stress by handling all your finances and business problems in no time! So, allow us to do this at an affordable package! Do You Require a License for an HMO? Every license will identify the total number of individuals for the occupation of the property. Moreover, it will also identify the number of years it will be valid. For an HMO, you need a license when in the property there are: Two or more separate households living Five or more tenants living Through your local council, you should apply for a license. The terms of the license will be set by the individual councils. You can ask your letting agent to apply for a license, or you can apply yourself. When applying for a license, a landlord has to inform the following different parties, and the details of these parties must be pass on to the council. The occupants who have more than three years left on the current tenancy The lender in case you have a buy-to-let mortgage The freeholder of the property (if any) Any other owners of the property Conclusion We hope now you have understood what is HMO and what are the responsibilities of an HMO landlord. Finally, we will conclude our blog by saying that managing all your properties by yourself is complex. So, if you want to grow your property portfolio, we recommend you take help from a professional letting agent to manage your house of multiple occupants (HMO). Are you looking for a professional letting agent? Then, look no other than CruseBurke. We are qualified, cost-effective accountants that will properly manage your HMO and its tenants at an affordable package! So, contact us right away! Disclaimer: This blog contains general information on what is HMO.

What is the Allotment of Shares & What are the Reasons for Issuing Shares?

George04/10/2021Business , Business Growth Ideas , Limited Company

You may want to change your company’s share structure by adding a new shareholder, or changing the current percentage of shares between the shareholders; this is where the allotment of shares comes into play. In the allotment of shares, the company issues and allots shares to new or existing shareholders. The shares can be allotted to both individuals or corporate entities. But what is the reason for allotting shares? To know about it, read this blog till the end. Talk to one of our chartered accountants in Croydon about the online accountancy services we provide. We are just a click away! If you are confused about the process of shares allotment and you want an expert service for it, then feel free to contact us! What is the Allotment of Shares? By the company, the process of issuing shares and then allotting them to new or existing shareholders is known as the allotment of the shares. New Shares are usually allotted when new business partners are introduced in the company. Most of the companies consider issuing and allotment of shares as the same thing because they follow the same procedure. But keep in mind that these two are different terms unless they follow a similar procedure. What are the Reasons for Issuing Shares? The main purpose of issuing shares is to raise funds for a business. Some of the essential reasons to issue new shares are as follows: For the repayment of the company’s borrowings. In order to raise funds for a company. To raise funds for development or for a new project. At the time of incorporation of a company. To raise funds to purchase a new company or a business. To repair the trade continuation and damaged balance sheet of small businesses at the time of financial crisis. When shares are granted by a business as a share option to employees or directors. When a senior employee becomes a director or a new director joins the company. The Process of Allotment of Shares To allot shares to the new shareholders, all the companies need to perform few specific steps. The following is the procedure for allotting shares. 1) Confirmation to Shareholders ID & Shareholdings It is mandatory to confirm the existing shareholdings, the shares you are proposing to introduce, and your shareholder’s final shareholding structure. The confirmation of the following details is necessary in order to allot a share to a new shareholder. Name Date of birth Relation with other shareholders Residential address Nationality Proof of the ID 2) Holding a Board Meeting To hold a board meeting is essential for shares allotment. The changes are required to be approved in the board meeting, after confirmation of the shareholder’s ID and shareholdings. The information regarding the shareholders and the revised share structure should be included in the minutes of the board meeting. And, it has to be kept secure in the records of a company. These details are then forwarded to the Companies House and they can be utilised as evidence during an audit. 3) Updating Companies House for New Shares Allotment After the allotment of the shares, the details are required to be reported to the Companies House within one month of allotment. This is done by completing & filling the statement of capital form (SH01). The form can be easily filled out on the website of Companies House. This form is utilised to update the share structure of a company to Companies House. The SH01 form is used to report the number and value of newly allotted shares to Companies House, but it does not include the names of shareholders — that is reported in the CS01 (Confirmation Statement). 4) Issuing of New Share Certificates According to the new share structure, the new share certificates are issued to the shareholders after updating the Companies House of the allotment of the new shares. The details about shareholdings are included in a share certificate. Moreover, the certificates that are issued previously will be cancelled automatically. 5) Updating the Company’s CS01 (Confirmation Statement) with New Share Totals Updating the CS01 with the Companies House is mandatory for you. The new share structure in the company will be displayed after updating it. In the company’s confirmation statement, you must include the details of a new shareholder. This is because the SH01 form does not contain any details that are related to a new shareholder. Quick Sum Up We hope now you have understood what is the allotment of shares, the reasons for issuing shares, and the process of share allotment. Go through the above-mentioned procedure while allotting shares. We recommend you consult with a chartered accountant as the process of issuing and allotting shares is quite technical without the help of a professional. CruseBurke provides an expert service for the allotment of shares, providing all the required minutes, forms, and documents with practical advice! So, contact us now! Disclaimer: This article intends to provide general information on allotting shares.