Non-resident Landlord scheme query?

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    Non-resident Landlord scheme query?

    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.

    #2
    I have never known tenants being forced to use the scheme if they are under the threshold.
    HMRC generally enforce these things if "they belive revenue is at stake"

    Comment


      #3
      Originally posted by Thompsons View Post
      I have never known tenants being forced to use the scheme if they are under the threshold.
      HMRC generally enforce these things if "they belive revenue is at stake"
      I'm quite sure that is right. I declare all my property earnings by self assessment and I am both honest about that and bang up to date. There would be no reason for HMRC to be concerned about not getting the tax that's owed. Thanks for the insight.

      Comment


        #4
        if you have moved abroad, then you need to inform HMRC of change your address for sending of annual tax return to you ( and tax demands for payment ) .

        Do you want to be treated a resident or non-resident ?

        Comment


          #5
          Hi, yes HMRC already know my new French address and have sent out a tax return for 2011-12 already. I will be a non-resident as I have moved permanenetly to France.

          Comment


            #6
            I am on the NRL scheme but didn't realise there was a threshold, or that they wrote to the tenant after every tenancy change.

            Anyway, I think my letter to its entitlement states that I can have it unless I mess up my tax affairs which I obviously have no intention of doing.

            I will reread the letter tonight & if different will post back tomorrow

            Comment

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