Tax Compliance For Non-resident Landlords

We recognise UK tax laws can be complicated and new to our overseas clients. You will receive full support from the moment you instruct us. Whether you choose our full tax service or appoint another accountant, we offer consistent and professional advice. However, by choosing our tax service, you will have one point of contact for all your property needs.

HM Revenue & Customs state that all UK income is subject to UK tax. Some clients may choose to file their tax returns themselves. However, HMRC constantly change UK tax laws, making it difficult to stay informed. We will ensure that your tax returns comply with current tax laws.

Our Services Include

Applying for approval to receive rental income without the deduction of tax by your agent

The Non-resident Landlord Scheme

A landlord whose usual place of abode is outside the UK is considered non-resident under the scheme. HMRC normally regard an absence from the UK of six months or more as meaning that a person has a usual place of abode outside the UK.

If a landlord’s place of abode is outside the UK, letting agents or tenants should operate the NRL Scheme. This means that tax should be deducted at the base rate of tax from any net rental income due to the landlord.

Landlords can either be an individual, a company or trustee.

Tax is collected using the Non-resident Landlord (NRL) Scheme.

Tax can be deducted by either:

  • a letting agent
  • the tenant

If the landlord is a joint owner, tax is paid on their own share of rental income.

However, you can apply to get your UK rental income paid without deduction of UK tax. If a landlord takes our Tax Service, we will submit the application on their behalf. If our service is not taken, please see below.

a) Non-resident landlords is an individual:

You can use:
Apply using the postal form (NRL1):
online service (sign in to, or set up a Government Gateway account) fill in the form on-screen, print it off and post it to HM Revenue and Customs

View Property

Apply online (sign in to, or set up a Government Gateway account)
If you use the online form, you’ll get a reference number that you can use to track the progress of your form.

View Property

b) Non-resident landlords is a company:

If you’re a company and want to apply to get UK rental income paid without deduction of UK tax, and the company is a landlord of a UK property which:
has no place of business in the UK and is incorporated outside the UK unless it is regarded as resident in the UK for tax purposes

You can use:
Apply using the postal form (NRL2):
online service (sign in to, or set up a Government Gateway account) fill in the form on-screen, print it off and post it to HM Revenue and Customs

View Property

Apply online (sign in to, or set up a Government Gateway account)
If you use the online form, you’ll get a reference number that you can use to track the progress of your form.

View Property

c) Non-resident is a trustee:

You can use:
Apply using the postal form (NRL3):
online service (sign in to, or set up a Government Gateway account) fill in the form on-screen, print it off and post it to HM Revenue and Customs

View Property

Apply online (sign in to, or set up a Government Gateway account)
If you use the online form, you’ll get a reference number that you can use to track the progress of your form.

View Property

Preparing your annual income and expense statement

We will compile and prepare details of the full tax year’s rental income and expenses in Excel spreadsheets for you.

a) We will reconcile your landlord statements to ensure all rental receipts less expenditure paid by your agent (net rental income) matches payments paid to you.

b) We will check your rental statements to ensure expenses are not deducted twice in error by your agent.

c) Rental income and expenses are broken down by month for easy entry and then summarized on a separate page ready for inclusion on your tax return.

d) Categories match the categories found on the tax return format.

Preparing your annual tax return

The tax year is from 6 April to 5 April the following year.

You must report any profit on a Self-Assessment tax return if HMRC ask you to.

If you’re not registered for Self-Assessment, If you don’t usually send a tax return, you need to register for Self-Assessment by 5 October following the tax year you had rental income. If you don’t, you could be charged a penalty.

If you take out our service, we will

a) submit your application to be registered for Self-Assessment and get a Unique tax reference number for you

b) Prepare your annual tax return

c) submit your annual tax return on time.

Please see HMRC link below: https://www.gov.uk/self-assessment-tax-returns/deadlines

Paying tax due to HMRC

You must pay tax on any profit you make from renting out property. How much you pay depends on:

  • how much profit you make
  • your personal circumstances

Your profit is the amount left once you’ve added together your rental income and taken away the expenses or allowances that you can claim.

The deadlines for paying your tax bill are:

31 January - for any tax you owe for the previous tax year (known as a balancing payment) and your first payment on account

31 July for your second payment on account

Please see HMRC link below: https://www.gov.uk/pay-self-assessment-tax-bill/overview

Requesting any refund due for HMRC

We will request any overpaid tax is refunded to you from HMRC on your behalf.

Please see HMRC link below: https://www.gov.uk/claim-tax-refund/you-fill-in-a-self-assessment-tax-return

Responding to all HMRC related queries

We will respond to all HMRC related queries on your behalf and keep you informed.

Simply fill out the below form and expect to receive a call from our friendly team soon

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