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Non resident landlords

Do you need to file a NRL1 for each property?

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If a landlord lives abroad and wants to be paid gross they need to fill in a NRL1 form. do they only need to do this once regardless of the number of properties they own of do they need to do this for each property?

I was of the opinion that it only needed to be done once as it was unique to the person but I am now doubting myself as a NRL is telling me he has to do it for every propety.

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By ann domonkos
02nd Sep 2020 11:41

Its the landlord that registers they give him a number which covers all of the properties in his portfolio .

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By unearned luck
03rd Sep 2020 13:29

Q: How would a clued-up tenant or letting agent know that they can lawfully pay the rent gross to the NR landlord? A: HMRC write to the payer to give authority to make gross payments.
Q: How do HMRC know who to write to? A: The landlord provides details of each property, tenant and any letting agent on form NRL1

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Replying to unearned luck:
By gerrysims
03rd Sep 2020 13:50

Sorry but that is wrong on both counts !
HMRC do not write to rent payers. It is the tenants duty to pay net to a NR landlord unless they have an exemtion number.
NR landlords do not list their tenants with HMRC apart from on the original NRL1. HMRC are unaware of subsequent changes or new leases. The NR landlord just receives an exemption letter and code.

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Replying to gerrysims:
By unearned luck
06th Sep 2020 18:43

I defer to your superior knowledge, but it is very odd that someone is absolved from the responsibly to deduct on the say so of the recipient.

I note that HMRC's guidance says at para 1.5 "Letting agents and tenants do not have to deduct tax from the rental income of a non-resident landlord if HMRC has told them in writing that the landlord is approved to receive the rental income with no tax deducted".

And at 11.19 "Where a non-resident landlord changes letting agents, or tenants
where there is no letting agent, a notice held by the old letting agent or tenant cannot be transferred to the new letting agent or tenant. The landlord should write to Charities, Savings & International with details of the new letting agent or tenant. Charities, Savings & International will then send a notice to the new letting agent or tenant. New letting agents or tenants must deduct tax until they
receive a notice from Charities, Savings & International."

Please explain why HMRC's guidance is wrong (or out of date).

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