Non Resident Landlord Scheme

Consecca

Hi All,

I am a tenant of a flat that I have been paying rent on for a bout 3 years now. The other other day I received a letter in the post titled Non-resident Landlord Scheme: notice to pay rental income with no tax deducted. I have no idea what this means for me? I have tried googling information on this but did not bring up any answers that made any sense to me.

Anyone else head of this scheme and how does it affect tenants?

buggy_boy

Consecca wrote: »

Hi All,

I am a tenant of a flat that I have been paying rent on for a bout 3 years now. The other other day I received a letter in the post titled Non-resident Landlord Scheme: notice to pay rental income with no tax deducted. I have no idea what this means for me? I have tried googling information on this but did not bring up any answers that made any sense to me.

Anyone else head of this scheme and how does it affect tenants?

I believe that if you own a property that you rent out but are not resident in the uk then any letting agent must deduct tax before passing that on to the landlord.

Does not seem to be anything to do with you, is a letting agent involved? My understanding is that it should not affect tenants its more a letting/management agent undertaking.

buglawton

It's to do with
https://www.gov.uk/tax-uk-income-live-abroad/rent
Assuming it's not a sophisticated scam letter.

OP, when you say 'I received a letter' do you mean it was addressed to you by name? Or to 'the occupier'? If the latter, pass it onto the agent or owner.

00ec25

Consecca wrote: »

I have tried googling information on this but did not bring up any answers that made any sense to me.

why did it not make sense?
https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad

what is the letter asking you to do? We cannot read it from here and your post does not say what you actually want help with

The NRL is the scheme under which a LL who does not live in the UK must register with HMRC in order to receove the rent paid to them without deduction of tax.

If they do not do so (or HMRC refuses) then either the letting agent or the tenant themselves must deduct 20% tax from the rent before paying it to the LL. The LA or tenant are then legally liable for paying that tax to HMRC themselves and if they do not pay it over, then HMRC will come after the :LA or tenant to get the money from them.

all of which is explained in the link above if you read it

so :
a) is your LL abroad, yes or no?
b) who do you pay your rent to : direct to the LL, or direct to a letting agent?
if paid to LL has the LL given you a copy of the HMRC letter registering him on the NRL and confirming he can be paid gross, if not get it !
if paid to the LA, forget all about the NRL, you are not liable under any circumstance

Consecca

buggy_boy wrote: »

Does not seem to be anything to do with you, is a letting agent involved?.

I don't think so because I pay the landlord via DD into his personal bank account every month, not through any letting agency.

Consecca

buglawton wrote: »

OP, when you say 'I received a letter' do you mean it was addressed to you by name? Or to 'the occupier'? If the latter, pass it onto the agent or owner.

I do believe it is legit - but I have texted my landlord about this letter anyway to check that it is.
But yes it was addressed to me by name.

Slithery

Consecca wrote: »

I don't think so because I pay the landlord via DD into his personal bank account every month,

OK. So now you have this letter from HMRC you can stop paying 80%to the LL and 20% to the HMRC every month and send it all straight to the LL instead.


You were paying the landlords tax directly to the HMRC weren't you?

G_M

The links above explain the scheme.


It would certainly help us to help you if you quoted exactly what the letter says and who from (though we are assuming it's from HMRC).


But from the limited information you've given it seems that HMRC have agreed with the landlord (who is overseas) that he can receive his rent from you in full. Paying tax on his rent is now his responsibility.


Without this letter, paying his tax on the rent would have been your responsibility (as he is overseas & has no UK leting agent).

G_M

On a separate subject, have you been given an address (postal address) in England or Wales for the landlord?

This is required by law.

If not, you do not need to pay rent till he provides that address in writing.

Landlord and Tenant Act 1987section 48