Non-resident landlord and tax

HotTrot

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N79

Tell the LL that you have not received your notice of authorisation to pay gross rent from HMRC so you would like to see a copy of his notice of acceptance onto the NRL scheme from HMRC.

If he refuses, post back.

HotTrot

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HotTrot

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theartfullodger

Correct, and if been approved by HMRC they will have documents they can send you a copy of.

I wonder if he is declaring his tax.. if not I am sure he'll be pleased to hear HMRC know he should be declaring his rental income..

Cheers!

Artful (Tax-paying Landlord, clearly... )

HotTrot

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G_M

HotTrot wrote: »

I am wondering if I have the following correct.

1) If the landlord is resident, then I would pay them gross and it would be up to them to declare the tax
2) If they are non-resident, but have not applied (and been accepted) to receive the rent free of tax, I have a duty/liability to deduct basic rate tax
3) If they are non-resident, but have successfully applied to receive it free of tax, I can just send it gross

Is that correct? Any thoughts would be greatly appreciated.

Yes. Correct. You also say :

He has kept this address as his the place where all of his mail is sent to..

Is this the only UK address you have for him? Without a UK address you do not have to pay rent at all. Clearly the property address is not a contact address for the LL! Details here on Landlordzone.

HotTrot

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theartfullodger

Your contract is/was with landlord: Agent was just that, agent & agent of landlord at that.

Are you happy to receive Landlord's mail?? If not you can & are entirely entitled to "return to sender" with "not at this address" on mail, but I'd suggest advising Landlord of you planning this first...

N79

HotTrot wrote: »

I'm still waiting to hear back from the landlord but, in the meantime, I am wondering if I have the following correct.

1) If the landlord is resident, then I would pay them gross and it would be up to them to declare the tax
2) If they are non-resident, but have not applied (and been accepted) to receive the rent free of tax, I have a duty/liability to deduct basic rate tax
3) If they are non-resident, but have successfully applied to receive it free of tax, I can just send it gross

If the above is correct, and the landlord has not been accepted to receive the rent free of tax, then the main issue for me is trying to identify whether he is resident or not. If he is resident, he would have to pay the tax himself, if he isn't resident it would be down to me.

Is that correct? Any thoughts would be greatly appreciated.

Sorry but this is not quite correct (although the confusion is all HMRC's fault)

The requirement for a tenant to take place in the non resident landlord scheme is based on the LL's usual place of abode, and not their resident status. It is possible to be resident in the UK but to have a normal place of abode outside the UK (indeed, this is very common in a split tax year).

Why on earth HMRC called it the "non resident landlord scheme" rather than the scheme for "landlords with a usual place of abode outside the UK" thus causing this confusion is beyond me.

However, HMRC's website provides fairly comprehensive guidance.

HotTrot

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