PWR Letting Agents Nottingham and Mansfield – Tax and non-residency information for landlords

Tax and non-residency information for landlords - PWR Letting Agents in Nottingham and Mansfield

PWR Letting Agents aims to offer a comprehensive letting service and as such provide the information below is provided to help landlords when considering the tax and non-residency implications when letting properties.

Tax & Non-Residency

Income tax is payable on rental income irrespective of where you live. Landlords must declare this income on a Self-Assessment Tax Return and if one is not issued automatically he or she has a legal responsibility to notify the Inland Revenue of any liability. As the Inland Revenue assesses your income individually, properties that are jointly owned require returns to be completed by each legal owner. There is a requirement under Self-Assessment to keep adequate records to ensure that the calculations included in the return are accurate. 
 
The Non resident Landlords Scheme is a scheme for taxing the UK rental income of Non resident landlords.
 
The scheme requires UK letting agents to deduct Basic Rate tax from any rent they collect for Non resident landlords. If Non resident landlords don't have UK letting agents acting for them, and the rent is more than £100 a week, their tenants must deduct the tax. When working out the amount to tax the letting agent/tenant can take off deductible expenses .
 
Letting agents and/or tenants don't have to deduct tax if HM Revenue & Customs (HMRC) tells them not to HMRC will tell an agent/tenant not to deduct tax if Non resident landlords have successfully applied for approval to receive rents with no tax deducted. But even though the rent may be paid with no tax deducted, it remains liable to UK tax. So Non resident landlords must include it in any tax return HMRC sends them.

Download NRL 1 form

Download form guidance notes