Help with Non resident landlord scheme

Help with Non resident landlord scheme

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 A Lettings Agency client phoned me today asking for the following:

The HMRC reference (beginning with NA or NT) relating to the authorisation to pay rents to the landlord without withholding tax.

I must admit I am not up to speed on this one.

Could someone please tell me how my client can get this reference from HMRC? And indeed how it all works.

The client has recently signed on several non resident landlords and hence I need to look into this.

I would be grateful if someone could kindly point me in the right direction as to what I need to do.

In the meantime I shall also start researching on the web.

Kind regards

Replies (3)

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By [email protected]
05th May 2010 20:30

Non Residency Landlords Scheme

Hello

Your client will need to complete and sign a form NRL1 (if you type this into google a PDF version will be shown in the results). Once signed, you need to submit the form to HMRC (i think the address is shown on the form).

Hope this helps :)

 

 

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By cathygrimmer
06th May 2010 14:11

Agent's obligations

It is the landlord who submits form NRL1 (NRL2 if it's a company, NRL3 if it's a trustee) not the letting agent (your client). But the letting agent must register with HMRC and deduct and pay over tax to HMRC if the landlord doesn't get authorisation (sent to the letting agent) to receive rents gross. I helped a local firm out with this last year when they finally realised they should have been doing something about their non-resident landlords over the past two years! Good news was that HMRC never asked any questions about the period prior to registration (even though we had declared the dates that the NR landlords were taken on).

Full details of the scheme can be founf here:

http://www.hmrc.gov.uk/cnr/nr_landlords.htm

It's all very simple but the easiest thing is to give them a standard letter to give to all current and new non-resident landlords (essentially landlords that they believe are out of the UK for 6 months of the year - not ones they know to be non-UK resident for tax purposes). If you email me, I might even be able to dig out a suitable letter for you.

If they get all NR landlords to fill in the NRL1 and get the rents tax-free, then they only need to do Nil returns. Easy!

Cathy

[email protected]

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By User deleted
06th May 2010 16:13

Thanks to both of you, especially Cathy for such a clear reply.

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