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Beansontoastwithcheese
Posts: 1 Newbie
Hello all,
We have been privately renting a house for the last approx 7 years through a letting agency. The landlord lives abroad. The landlord has been quite good on the whole, in terms of getting repairs arranged and so on. Recently, he contacted us directly to ask if we would like to rent from him directly and cut out the letting agency. He said he would be able to reduce the rent cost, and that he would have his mail delivered to this property and we would have to forward it to him.
The reduced rent sounds good but I don't understand why he'd want his mail directed here, and also whether it's going to be a good idea in the first place to cut out the letting agency. Any thoughts on this. please?
Thank you.
Edit to add: His exact wording was he wants to RE-REGISTER himself here.
We have been privately renting a house for the last approx 7 years through a letting agency. The landlord lives abroad. The landlord has been quite good on the whole, in terms of getting repairs arranged and so on. Recently, he contacted us directly to ask if we would like to rent from him directly and cut out the letting agency. He said he would be able to reduce the rent cost, and that he would have his mail delivered to this property and we would have to forward it to him.
The reduced rent sounds good but I don't understand why he'd want his mail directed here, and also whether it's going to be a good idea in the first place to cut out the letting agency. Any thoughts on this. please?
Thank you.
Edit to add: His exact wording was he wants to RE-REGISTER himself here.
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Comments
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I seem to recall that if you do you are then responsible for notifying HMRC that you are paying an overseas resident.
Could be wrong though.I am not a cat (But my friend is)0 -
Your contract is with the landlord not the letting agent. If the landlord wants to ditch the letting agent that's up to him.
Get your landlord to confirm all this in WRITING. He will also need to provide you with an address in England or Wales for the serving of notices.
As you is resident overseas you'll need to find out if he wants you to deduct the tax from the rent or if he will apply to pay the tax himself through Self Assessment.
https://www.gov.uk/tax-uk-income-live-abroad/rent0 -
You don't ask him what he wants, you as him for a document from HMRC proving he's OK, otherwise you MUST withhold 20% of rent for tax man.
Redirected mail? Return it all to sender "not known at this address". He's trying to do some fiddle, have nothing to do with it.0 -
Pixie and artful have covered the main points, though I disagree slightly with artful over the post - this may or may not be some fiddle. So long as there is no major inconvenience to you (eg forwarding his post overseas!) why not cooperate? But then, I'm a tea & cake kind of guy!
However as said:
1) Tax - see NRLS here, and here
2) by law the LL must give you an address in Eng/Wales where you can serve notices on him (ie write officially). Once he gives you that address, it is assumed legally that he receives any letter you send there, even if he does not. If he does NOT give you an address in Eng /Wales, you do not have to pay rent. See
Landlord and Tenant Act 1987 section 48
3) Providing he does these 2 things, the decision not to use a letting agent is entirely up to him, but can benefit you both.0 -
OP has most likely already been provided with an address in England or Wales for the service of notices, probably the letting agent's.theartfullodger wrote: »Redirected mail? Return it all to sender "not known at this address". He's trying to do some fiddle, have nothing to do with it.
Do check your tenancy agreement first. It might contain a clause regarding mail addressed to landlord.0 -
I wouldn't be wanting his mail coming to my address. He might be up to no good and you could wake up one morning with bailiffs or police at your door looking for him.
Sounds like your address is going to be his "UK address for serving notices".
I like an easy life.0 -
theartfullodger wrote: »You don't ask him what he wants, you as him for a document from HMRC proving he's OK, otherwise you MUST withhold 20% of rent for tax man.
Redirected mail? Return it all to sender "not known at this address". He's trying to do some fiddle, have nothing to do with it.
I think you're being a bit quick to judge here. As an oversees landlord myself it can be very useful to have a UK postal address at times. I use my sisters but if she wasn't around then I could quite conceivably ask my tenants if they wouldn't mind collecting the odd bit of mail for me.
Also if the landlord has been decent for 7 years and the letting agent is really adding little value then I'm not surprised he may want to cut them out to increase his profit margins. Just make sure he is still able to performs all his duties (relevant safety cheques, HMO compliant, fully registered, secured deposit etc)
As for the tax surely it is the landlords responsibility. I have used letting agencys where they have simply deducted the tax at source paying me net and others where they have paid me gross and I have had to declare it. At no point has the tenant ever had any responsibility. I fail to see why this changes when the letting agent is removed.0 -
Read the HMRC links provided.As for the tax surely it is the landlords responsibility. I have used letting agencys where they have simply deducted the tax at source paying me net and others where they have paid me gross and I have had to declare it. At no point has the tenant ever had any responsibility. I fail to see why this changes when the letting agent is removed.
Where rent is paid to a UK based letting agent, on behalf of an overseas landlord, that agent has tax obligations.
Where rent is paid by a tenant direct to an overseas landlord (or collected on his behalf by his UK based friend/family), the tenant has tax obligations.
For the avoidance of doubt, I quote HMRC:
As a further warning, should the tenant not do this, and should the landlord not pay his UK tax, HMRC can demand payment of the landlord's tax from the tenant retrospectively.Tenants
If your landlord lives abroad and you pay over £100 a week, you need to register with HMRC and deduct tax from your rent.
You also need to register with HMRC if you pay a UK representative of your landlord, such as a friend or family member, who isn’t a letting agent.
You don’t need to deduct the tax if HMRC has told you in writing that the landlord can receive the rent with no tax deducted, but you must still register with HMRC and complete an annual report.0 -
wow Ok I stand corrected. Guess I need to inform my tenants then although thankfully all my tax has been declared and paid.
As an aside how does the tenant know how much tax to withhold if they don't know the landlords tax bracket? I find it strange that in my dealings with HMRC they have never mentioned this given the information is all pretty black and white on my tax return (Im not doubting you having read your link just find it strange they haven't mentioned it). Time to give my accountant a call later today! Is it a fairly well known rule? I have a lot of expat friends renting out their places back in the UK and this has never come up in conversation.0 -
wow Ok I stand corrected. Guess I need to inform my tenants then although thankfully all my tax has been declared and paid.
As an aside how does the tenant know how much tax to withhold if they don't know the landlords tax bracket? I find it strange that in my dealings with HMRC they have never mentioned this given the information is all pretty black and white on my tax return (Im not doubting you having read your link just find it strange they haven't mentioned it). Time to give my accountant a call later today! Is it a fairly well known rule? I have a lot of expat friends renting out their places back in the UK and this has never come up in conversation.
It is well know to HMRC and usually handled by letting agents if they are any good.
You can still apply to HMRC to pay your tax directly and they will send confirmation of this which you can provide to your agent or tenant.
https://www.gov.uk/government/publications/non-resident-landlord-application-to-receive-uk-rental-income-without-deduction-of-uk-tax-individuals-nrl1i0
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