Hi, I recently moved abroad permanently. I have a part share in 7 houses in the UK which are let out to a total of 36 students on joint tenancy agreements each lasting 6 months. We do not employ an agent, payments are made to us directly.
My share of the rent from each tenant does not exceed £30 per week. If I apply under the NRL scheme to have my rent paid to me gross, it will mean that every year, because of the number of tenants involved and the short term nature of these tenancies, I will have to inform HMRC of all the tenancy changes. HMRC in turn will have to send out in excess of 70 letters to the tenants advising them that they can pay rent to me without deducting tax at source. As none of them pay anywhere near the £100 per week threshold rent for operating the NRL scheme so wouldn't ordinarily be required to deduct rent at source, it would seem neither sensible nor efficient for either me or HMRC bother, especially as I declare my UK tax via self-assessment and I am bang up to date with everything. The only thing that concerns me about the 'leave well alone' approach is that it does say on the HMRC website that even if tenants pay less than £100 per week they may still be asked by HMRC to operate the NRL scheme in certain circumstances. Does anyone know what these circumstances might be and does anyone have experience or knowledge of tenants being forced to operate the scheme when they pay under the threshold rent? Any insight much appreciated..gif "(happy)")
My share of the rent from each tenant does not exceed £30 per week. If I apply under the NRL scheme to have my rent paid to me gross, it will mean that every year, because of the number of tenants involved and the short term nature of these tenancies, I will have to inform HMRC of all the tenancy changes. HMRC in turn will have to send out in excess of 70 letters to the tenants advising them that they can pay rent to me without deducting tax at source. As none of them pay anywhere near the £100 per week threshold rent for operating the NRL scheme so wouldn't ordinarily be required to deduct rent at source, it would seem neither sensible nor efficient for either me or HMRC bother, especially as I declare my UK tax via self-assessment and I am bang up to date with everything. The only thing that concerns me about the 'leave well alone' approach is that it does say on the HMRC website that even if tenants pay less than £100 per week they may still be asked by HMRC to operate the NRL scheme in certain circumstances. Does anyone know what these circumstances might be and does anyone have experience or knowledge of tenants being forced to operate the scheme when they pay under the threshold rent? Any insight much appreciated.
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