Thank you very much for all the positive contributions!
The scenario is: A non-resident landlord has four properties in London and generate over £100,000 in rent income each year for the last three years, the letting agent deduct the 20% basic rate since the beginning. No one ever told him that he need file tax return, he's now asking if can get any benefit by applying the NRL1 to HMRC which allow him to get the gross rent and file the self assessment tax return.
As for the basic rate payers especially for who has personal allowance will certainly be better off by receive the gross rent and file the tax return.
For the higher rate payer as in this case, he'll end up in paying much more tax.
According to the following link, I think the Non-resident landlord need to file a tax return even the letting agent has deducted the tax at basic rate.
It's an XXX Art Association registered with the Companies House as a company limited by guarantee. Yes, it is a not-for-profit organisation but not a Charity.
The question I've asked is the membership fees paid by each member of £100 a year. The association may also receive donations from 3rd parties.
My answers
Thank you very much for all the positive contributions!
The scenario is: A non-resident landlord has four properties in London and generate over £100,000 in rent income each year for the last three years, the letting agent deduct the 20% basic rate since the beginning. No one ever told him that he need file tax return, he's now asking if can get any benefit by applying the NRL1 to HMRC which allow him to get the gross rent and file the self assessment tax return.
As for the basic rate payers especially for who has personal allowance will certainly be better off by receive the gross rent and file the tax return.
For the higher rate payer as in this case, he'll end up in paying much more tax.
According to the following link, I think the Non-resident landlord need to file a tax return even the letting agent has deducted the tax at basic rate.
https://www.gov.uk/tax-uk-income-live-abroad/rent
''Filling in your tax return:
You need to declare your rental income in a Self Assessment tax return unless HMRC tells you not to.''
The reason I'm asking here is that I want be sure my understanding is correct before I give any advice to him.
Thank you for all the replies.
It's an XXX Art Association registered with the Companies House as a company limited by guarantee. Yes, it is a not-for-profit organisation but not a Charity.
The question I've asked is the membership fees paid by each member of £100 a year. The association may also receive donations from 3rd parties.
Thank you for all above comments!
Many thanks! yes, it's for an individual. what's the logic or rules behind this?