If you protected the deposit within thirty days but did not serve the prescribed deposit information, either you or we can serve it late for the purpose of serving a section 21 notice. Under no circumstances can the deposit be protected late. Regarding the potential three times deposit claim, it rarely arises in a section 21 route, but serving the prescribed deposit late does trigger that claim, just so you're aware.

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If the deposit isn't protected, as mentioned, there are two ways to fix this. The goal is to use up the deposit so that there isn't one when you serve the notice. An agreed deduction occurs when the tenant agrees to deduct an amount from the deposit to pay the landlord. For example, 'Please use my deposit of £500.00 against my arrears of £1000.00, which will reduce the arrears to £500.00.' You can present this letter to the tenant for signing and dating. It could also read, 'Please use my deposit of £500.00 again for the rent due for January (or the relevant month) immediately.' Without the term 'immediately,' how do you serve the notice when you need to be sure there is no deposit when the notice is served?

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If you can't get this signature, you must return the deposit. “But the tenant is in arrears, so I don't want to return it. Why should I?”

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You should do so because you will not get possession if you do not, and you must see the return of the deposit as an enabling and empowering thing rather than the money you are returning. It is their money, and I am sure that is why the deposit rules came about. Now and again, this enables the tenant to find another place because they now have a deposit to put down.