Non Residents Landlord Scheme

<sebb>

While browsing this forum, I came across a thread and heard about the NRLS.

I have to say this is the first I've ever heard of such a scheme. My landlord has lived in Greece since leaving this flat and renting it out to me three years ago! I pay my rent directly to my landlord through standing order.

What do I do now?

Fire_Fox

Ask your landlord if he is registered with the inland revenue as an overseas landlord? Do you have an address in this country at which to serve notices?

G_M

Follow the advice on the HMRC website. If in doubt, speak to them. Rather than just witholding the tax element of your monthly rent in future they may instruct you to withold it all untill arrears are 'paid off'. Take advice from them.

chappers

personally speaking though I wouldn't bother, you will only be bringing a legal requirement upon your self to forward tax to HMRC, not to mention the administrative work that will come with it.
It his he who has to comply not you.
as has been said do you have aUK address where you can serve notices etc.

boliston

chappers wrote: »

personally speaking though I wouldn't bother, you will only be bringing a legal requirement upon your self to forward tax to HMRC, not to mention the administrative work that will come with it.
It his he who has to comply not you.
as has been said do you have aUK address where you can serve notices etc.

It would be very dangerous "not to bother" as HMRC could come after the tenant for any unpaid tax as well as likely change penalties and interest.

Any tenant who pays a NRL gross without an HMRC approval notice is taking a massive gamble.

http://www.hmrc.gov.uk/CNR/nr_landlords.htm#23

G_M

It his he who has to comply not you.

Unfortunately not. Read the HMRC site. The risk is that HMRC find out and hold you reponsible for not having complied.

<sebb>

The issue I have is that I am about to buy a house and therefore am about to serve my notice to the landlord. Obviously I really dont want the hassle of sorting this out, but I'm just really nervous that this falls back on me.

I spoke to a number of people who have rented for years and no-one has even heard of this before! I'm really shocked that the tennant is held responsible for paying the tax on behalf of the landlord!

Is it possible that he is declaring the income as taxable somewhere else?

Oh and to answer the other queries, the address I have for him is in the UKwhich I've never used but I have his Greek mobile and email address. I've only heard from him about 5 times in the last three years (I also just found out he didnt protect my deposit and has never done a gas inspection which I read is a requirement but thats a whole separate issue!)

Fire_Fox

Have you asked your landlord or the inland revenue yet?

G_M

<sebb> wrote: »

The issue I have is that I am about to buy a house and therefore am about to serve my notice to the landlord. Obviously I really dont want the hassle of sorting this out, but I'm just really nervous that this falls back on me.

I spoke to a number of people who have rented for years and no-one has even heard of this before! I'm really shocked that the tennant is held responsible for paying the tax on behalf of the landlord!

Is it possible that he is declaring the income as taxable somewhere else?

Oh and to answer the other queries, the address I have for him is in the UKwhich I've never used but I have his Greek mobile and email address. I've only heard from him about 5 times in the last three years (I also just found out he didnt protect my deposit and has never done a gas inspection which I read is a requirement but thats a whole separate issue!)

In that case I would keep quiet and move out. You don't want HMRC clawing back 5 years worth of tax just as you leave.

No gas certificate/deposit scheme? Prob not worth worrying about if you're leaving unless you have difficulties (ie over the deposit) with your landlord.

To be honest the NRLS is not widely known though absent LLs really should know, but it is tough expecting tenants to be genned up on it. Trouble is the HMRC always want their tax dues from somewhere. If the LL is abroad and has not registered with them, and has no UK agent, they quite rightly fear he will keep his cash abroad and not pay them. So the only option is.........