NON-UK RESIDENT LANDLORD SCHEME
The Non-Resident Landlord Scheme (NRL) was introduced by HMRC to ensure that all overseas landlords are correctly registered for Self-Assessment. The NRL scheme has been around for a while and places the responsibility to collect tax on your letting agent if you have one, or bizarrely your tenant if you don’t have a managing agent in place. Every non-resident landlord not registered under the scheme should be deducted 20% from their rental income at source.
HMRC are becoming quite strict on this issue with letting agents, and you may be asked for your NRL number in the near future – if you don’t have one then the letting agent will start to deduct 20% tax from your net renal amount each month and pay this tax over to HMRC on a quarterly basis.
As your tax agent, we can assist with providing the NRL form and ensure that this is processed by the correct department within HMRC. You will be provided with a NRL number which your letting agent, or tenant, will need to exempt you from having to pay tax at source on a monthly basis. This may be especially frustrating if no tax is actually owed to HMRC and you then need to claim a tax refund from HMRC. Contact us today; we will ensure that this vital form is processed at no additional cost to you.