Non-resident landlord and tax

N79

00ec25 wrote: »

your responsibility as tenant stops when you inform HMRC's Centre for Non Residents which is the body that deals with any tax affairs of NR people (including NRL issues) - their contacts details are on page 2 here
http://www.hmrc.gov.uk/cnr/tenants_guide_to_the_nrl_scheme.pdf

No it doesn't, as your link makes plain. Notification is only step 1. Tax must be deducted and forwarded to HMRC and accounts kept, as per their box on operation of the scheme.

00ec25

Ok badly worded - what I meant was the rules are very clear, the OP either complies with the NRL rules or the OP does not - its the OPs choice and the choice is you must report

of course by contacting the CNR then the LL could be very annoyed if they are indeed evading, and the whole issue moves to another plane, as shown by the previous thread. But the OP appears to be financially covered as their liability is for the 5 months only and if CNR confimrs the LL status then the OP has the cash to make good on the tax due under the period when the LA is not liable.

HotTrot

..........

princeofpounds

If he can provide you with 'proof' that he is resident in the UK, even if you suspect it might not actually be the truth, then I would imagine that is enough of a defence. What else are you supposed to do as a tenant? As I mentioned previously, you actually have no way of telling where a landlord is resident at all, should he not choose to say. You have no right to know. I wish I knew some case law to confirm that though.

Again, stupid, stupid, stupid law.

And I'll repeat my earlier suggestion, if he is not happy about the situation he can appoint a UK agent to collect the rent from you (anyone he trusts will do) and your liability ends for any rent going forward at least.

HotTrot

..........

Eton_Rifle

princeofpounds wrote: »

I would imagine there are letting agents up and down the land who are sending money to overseas landlords and not paying the tax on it.

Yes probably but some certainly ask for the non resident landlord documentation.

I'm a landlord living abroad and I've used 4 different letting agents and they've all required this documentation.
Edit - actually, I think they've even prepared the registration for me at least once.

HotTrot

..........

HotTrot

..........

HotTrot

..........

franklee

HotTrot wrote: »

I have just been reading the earlier thread, and came across this



So, it sounds like if I deducted the tax, I could be liable for non-payment of rent, and if I don't deduct the tax, I could be liable for non-payment of the tax.

If that is true, it puts the tenant in an impossible position, unless the LL will give him all the information he needs, and will agree to not contest the lower rental payments (i.e. the amounts after tax).

Is this really the case?

To evict, the landlord could serve a section 21 notice requiring possession (no fault on the tenant's part needed so it can be served regardless) or a section 8 (which would need two months rent arrears to evict). Neither a worry in your case as you're wanting to leave anyway.

If a tenant deducted the tax and was taken to court for unpaid rent, I see no reason why they couldn't put in a defence that the shortfall was to pay the tax. Hopefully they'd have correspondence with the landlord trying to clarify the issue, receipts from HMRC and could explain why they had reasonable grounds to believe the landlord was abroad.

To avoid these deduction problems the landlord could write a letter confirming that he's resident or that he's non-resident and registered as exempt, that's hardly delving and the tenant could check with CNR if the letter is sufficient. IIRC that was the solution in the other thread. Without something in writing the tenant can't be sure they're off the tax collecting hook.

As the agent was collecting rent in the past, I wonder how they dealt with the residency issue?

You could write and ask for the landlords place of abode or place of business under Section 1 of the Landlord and Tenant Act 1985:

http://forums.moneysavingexpert.com/showpost.php?p=28709881&postcount=64