The Non-resident Landlords Scheme - HM Revenue & Customs

Reg. 9
Section 971(4) ITA
2007
4 LETTING AGENTS: CALCULATION AND PAYMENT OF TAX
Letting agents’ obligations
4.1 Letting agents who have to operate the Non-resident Landlords
(NRL) Scheme must calculate the tax for each quarter (subject
to paragraph 4.3 below). Quarters end with the last day of June,
September, December and March. Letting agents must pay the
tax due to HMRC’s Accounts Office, Shipley, within 30 days of
the end of the quarter.
4.2 Letting agents have the right to deduct tax they have to pay
under the NRL Scheme from rental income they receive on
behalf of the non-resident landlord, or from any other money
owing to the landlord. They also have the right to recover from
the landlord any tax they have to pay under the Scheme where
they did not deduct it from the rental income or other money
owing.
4.3 Letting agents are not required to calculate or pay tax on the
rental income of a non-resident landlord if the HMRC has told
them in writing that the landlord is approved to receive the
rental income with no tax deducted. But letting agents should
not accept a non-resident landlord’s statement that rental
income may be paid without deduction of tax - they should act
only on a notice from the HMRC. (see paragraph 1.17).
How letting agents calculate the tax
Reg. 9 4.4 Letting agents should calculate tax at the basic rate on rental
income (see paragraph 4.5 below) less any ‘deductible
expenses’ (see paragraph 4.6 below).
4.5 Letting agents should include in their calculation rental income
(see Chapter 9 below) they receive in the quarter and rental
income which:
• was income which they had the power to receive; and
• was paid away in the quarter at their direction to another
person without being received by the letting agent (see
paragraph 4.8 below).
4.6 Letting agents should include in their calculation:
• deductible expenses (see Chapter 10 below) which they
paid in the quarter; and
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Non-resident Landlords Scheme: Guidance Notes (01/12) 20