The Non-resident Landlords (NRL) scheme

The NRL scheme is designed to collect tax from UK property income where the landlord is not resident in the UK.

Under the scheme, a UK agent handling let property for a non-UK-resident landlord, or the tenant of the property if there is no agent, must tell HMRC about the letting income and deduct basic rate income tax from it when it is paid to the landlord.

As well as paying over the tax deducted, the agent or tenant must make an annual return to HMRC by 5 July after the end of the relevant tax year, and must give the landlord an annual certificate. For 2014/2015 the returns and certificates must be completed by 5 July 2015.

HMRC has recently changed its process for dealing with the NRL scheme and has published updated guidance and forms:

HMRC is no longer going to send agents or tenants a copy of the annual return form; it will only be available online. Those who need assistance with accessing the online form can contact the Non-Resident Landlord Scheme Helpline: 03000 516644 or 03000 516651.

The annual return should be submitted by:

  •  letting agents acting for non-resident landlords, even if no tax has been deducted under the Scheme;
  •  tenants who have deducted tax under the scheme.

Since the form will no longer be sent out as a matter of course, it is important that, in the absence of this prompt, agents or tenants are aware that returns will still be due as usual.

 ©Lindsey Sherman and Associates Ltd.  2010: Registered Office Copthorne Farmhouse, Main Street, Great Ouseburn, York. YO26 9RE