NRL Scheme-As a tenant should I be witholding tax to pay to CNR/IR-or am I deluded?!

clutton_2

""Think I will call the Council and inform them" - and afterwards write a confirmation of the phone call - councils always need everything in writing


i think re the tax thing - whether they are trying to cheat the tax man out of your rent's tax is an issue for them. You are paying your rent into a uk bank account - you cannot prove where she is living right now and indeed it would be impossible for you to do so.

I would write back and say that you had received professional advice which you assumed was correct, and are now quite confused, that you do not wish to cause offence, and that you will assume that they are handling their own tax affairs properly and that you will pay the rent in full. Meantime write to the revenue and let them deal with it.

Re their other landlords obligations, these are more serious - i suggest you start with what i suggested earlier re the Gas safety certificate - this is about your long term health and safety - not a few quid of tax - much more important

franklee

The line I would take is why are they arguing with you? If they dispute what you say then I'd ask them to discuss directly with CNR. The IR guide is clear:

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.

What you want is a letter from the inland revenue either:

1. Confirming the landlord is not Non resident. OR

2. Confirming that she is Non resident but you don't have to collect the tax.

In the absence of either then you carry on as you are.

I'd copy this request in writing to the LL, her brother, the council to protect your benefits and to the CNR (preferably a person by name that you spoke to on the phone). I'd also send these last emails claiming the landlord isn't non-resident to CNR and ask them to confirm her status, this could be tax evasion. Your case illustrates why the scheme is pants as it puts unfair responsibilities into the tenant who should not be responsible for a landlord who evades tax.

(Don't forget for all phone calls to CNR etc. take a note of the date/time of the call and the name of the person you spoke to. For other departments in the IR is I've found that if I've got to someone senior enough then the may give you their direct line so you can get back to them. So I'd ring them again explaining it all again and asking for a name to use for contact/letters.)

On the landlord's address, I don't have time to look it up now but there are two parts of legislation covering this. One that the landlord must provide an address for the service of notices, sounds like the brother's address is OK for that if tenancy agreement states it, so the rent is payable. The other is that a tenant upon written request (to the address for service of notices) is entitled to know the landlord's HOME address. Failure to comply within I think 28 days is an offence. So I'd use that to get the landladies home address and pass that letter to CNR. I'll try and find references to the two parts of legislation later on tonight if no one else has posted them by then.

franklee

clutton wrote: »

I would write back and say that you had received professional advice which you assumed was correct, and are now quite confused, that you do not wish to cause offence, and that you will assume that they are handling their own tax affairs properly and that you will pay the rent in full. Meantime write to the revenue and let them deal with it.

The problem is that if she turns out to be non-resident the tenant will be liable for the tax with no way to claim it back from a broke landlord living in OZ. I think the best thing is to follow the revenue guidelines.

franklee

Or the other way to solve this is suggest they set the brother up as the agent, so you pay the rent to him and then it's his problem.

broclo

Lol...Just spoken to CNR again.

They have said that as the LL told me that they were emigrating it indicated that she would be out of the UK for more than 6/12. Therefore creating NRL status.

Ther brother states hasn't been out the country for more than six months and thus is not classed as NRL . However the CNR have just said that as I was led to believe that ahe would be out of the UK for more than 6/12, anything that is to the contary will need to be proved by her, in the form of a written statement, or I must follow their proceedure, to uphold my responsibilities.

Apparently also, it is regardless that at this time, she has not been outside the UK for 6 months yet as the tax status for a NRL starts at they day they leave. Intent to stay outside the uk for 6 of 12 is justification in itself.

Hmmm, think I will send an email reply with the above, but worded better(head spinning!)




Oh and yes, Im dealing with GSC...just as rent is due, I need to confirm whether I should remove the 20% from it, plus also deduct the 20% from the previously paid as if I have it wrong, the LL is not going to treat me nicely if I remove 40% from yesterdays rent! So time is of the essence I guess.

broclo

franklee wrote: »

The problem is that if she turns out to be non-resident the tenant will be liable for the tax with no way to claim it back from a broke landlord living in OZ. I think the best thing is to follow the revenue guidelines.

Exactly as I think she is on the verge of losing the house anyway, very presumptious, but she is screaming as rent due to be passed over from LHA yesterday and she is panicing, plus has used my deposit.

There may not even be rent to 'deduct' from shortly lol

broclo

franklee wrote: »

Or the other way to solve this is suggest they set the brother up as the agent, so you pay the rent to him and then it's his problem.

Yes it would make it easier that is for sure.

However, he is a nightmare the last 24hrs. So I'm thinking after this bout of emails(so they are clear of my intentions and not mentaly leaving them in the lurch) I am going to only write to HER at the C/O address or to her solicitors. He is a complication to the situation and my tenancy agrrement does not mention him, therefore he is basicaly void in my view.

I believe also, if it is passed to another person, the tax office will not see their money.

broclo

Argh...just realised...his last email...he evaded the solicitor question again lol

With this behaviour I really feel I must protect my deposit and go to court for deposit plus x3, they are taking the micky out of me!

Although...as you point out franklee, if no valid address or they fail to provide the solicitors details, I could end up unable to do so!

I bet the second I pay the rent, they will put that into a deposit scheme lol. Although I'm still convinced that it means a deposit is not valid if entered late.

princeofpounds

Franklee's point is the best bet to getting the message across.

Write to him...

'do you not understand that if I get this wrong I have a huge tax liability with no way to reclaim it because the Landlord is in a foreign country? what part of this don't you get?'

;-)

clutton_2

you are getting very muddled. deal with one thing at a time.

You are not entitled to the landlords home address - you have to be given a "serviceable address" - ie one at which papers can be served and to my knowledge courts do not accept post office boxes as serviceable addresses.

here is a compromise - if you get the solicitors details - why not suggest to the bro that you agree to put the tax element into the solicitor client account until liability, or otherwise, is established.

the deposit is another matter and can be dealt with at a later date.

i fear you are taking on too many battles in one go and possibly other peoples battles also.

may i suggest that you do not reply to any more of the bro's emails for a couple of days - take some time out to think and get some perspective - you have a plethora of info to deal with and work with right now; a few days calm will take the heat out of the situation

because you are waiting for LHA to pay your rent - you are in the hands of beaureaucrats - and you may be at a disadvantage if the rent is late arriving - threatening court action re the deposit just now would be a foolish thing to do.