Back dating Non-Resident landlord Scheme set up

Back dating Non-Resident landlord Scheme set up

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We have been approached by an Irish company that owns a rental property in London.

The company has been receiving rent (I believe from a connected party) for the last three years. Both the tenant and the company were ignorant about UK NRL obligations and therefore no tax was ever withheld or returns were ever filed.

They now wish to rectify the situation and have asked us to assist. We are suggesting the company applying for NRL scheme registration and contacting HMRC with full disclosure of the previous years.

I would like to hear if anyone else has experience in dealing with such matters and how HMRC is likely to handle this case (penalties etc.)? 

Thank you 

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By satriani7
13th Sep 2011 12:51

My only previous experience with a slightly similar position was when approached to act for a non-resident charity.  They had been receiving gross rents for the past few years.

The estate agents in the UK (whom we act for) were being investigated for not deducting tax from any of their non-resident landlords and the charity got caught out this way.

We applied for exemption from the NRL scheme which was approved however the Inspector would not backdate the exemption.  Instead, the non-resident charity had to pay the tax for the period prior to exemption, which was unfair to them - They had never heard of the NRL scheme therefore and so obviously didn't apply for an exemption.

No penalties were levied in my case.

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