Overseas landlords have extra issues to consider – we take care of them all
UK resident landlords have a responsibility to inform the Inland Revenue of rental income received and to pay any tax due.
Where we are managing a property and collecting the rent for a landlord that we know is going to be resident outside the UK during a tenancy for more than six months in total, Daisy Lets & Sales are required to retain and forward to the Inland Revenue on a quarterly basis, an amount equal to the basic rate of income tax from rental received (currently 20%), less certain expenses. However most overseas/Non resident landlords prefer to be in control of their own tax and pay it at the end of the tax year via their self assessment tax return. This is because the personal tax allowance is taken into account and expenses that we may not know about can also be deducted first before arriving at the final tax figure due. Don’t forget if the property is jointly owned there are two allowances.
An online application form (NRL1i) for exemption from basic rate deductions and further information may be obtained from the Inland Revenue. We recommend you apply as soon as you know you will be renting your property as it can take a few weeks for the letter to be send through to us with your exemption number. You do not need to know the exact figures in advance, you can estimate the amount of rent expected and expenses for the purposes of filling out the form.
You will need our NRL Scheme number to insert on the form:
London Office: 904/NA 042239
The HMRC will then write to us authorising us not to take the tax at source, and to pass over the full rent to yourselves. They give us a number personal to you, without this number we will have to deduct the tax. You are able to claim it back at the end of the tax year via your self assessment tax return. If we have taken tax, we produce a certificate for you to include on your tax return once the tax year ends, before July.