Search form

menu menu
Belgium
Working
Culture
Moving
Education
Leisure
Living
Transport
Flemish Brabant
Europe
Post your own »

Search Q&A

Categories

Advice & Coaching 3,670
Animal 176
Arts 89
Beauty 150
Belgium 1,354
Children 632
Culture 165
Education 434
Food & Drinks 444
Health 638
Holiday 226
Property 1,081
Shopping 1,040
Sport 256
Transport 729
Wellness 104
Work 749

UK Landlords..

Mikek1300gt
Dec 16, 2014
11
Question

If you have property rented out in the UK, how are you handling the taxation issue with the new non-resident Landlord scheme?

red

What's new? Just register for self assessment and pay accordingly.

Dec 16, 2014 17:14
NethenBob

Echoed. Your choice to declare or not. Call them if you don't know how to.

Dec 16, 2014 18:57
Mikek1300gt

Well, my friend said that self assessment was not an option according to HMRC and that an exemption in order to receive the tax gross from the tenant was refused on the grounds that it was not applied for before the tenancy began.

It would seem odd that a whole new raft of rules and regulations could simply be ignored by simply registering for self assessment. I'll let her know that she needs to tell the tenant to ignore HMRC rules.

Or perhaps not.

Dec 16, 2014 21:45
Mikek1300gt

""receive the tax gross""

Should read rent, not tax.

Dec 16, 2014 21:46
Mikek1300gt

Well, I just wasted an hour of my life on this and I can see absolutely nothing that says the new rules can be ignored by simply registering for self assessment.

It does say that you can get the rent gross and pay via self assessment but ONLY if you meet certain criteria and that includes having an exception from the NRLS before any tenancy agreement starts.

Just collecting the rent and sorting out the tax later is no longer an option for either landlord or tenant. I can see a lot of UK landlords falling foul of this, and their tenants as well.

Dec 16, 2014 22:40
J

This sort of shite is exactly why I left the UK in the first place. "tenant deducting tax"? No - get out of the UK econnomy into a place where the red tape actually works and is fair. Like Belgium (ironic isn't it).

"If you don’t have a letting agent and your tenant pays you more than £100 a week in rent, they’ll deduct the tax from their rent payments to you."
That is, quite honnestly, the most moronic thing I have ever heard. I NEVER had a tennant in who understood the legal rights and obligations associated with their tenancy.

Dec 16, 2014 23:49
Mikek1300gt

There is more to the UK economy (which actually works, like Belgian red tape) than these stupid rules on renting. Of course, the reason they are there is because overseas folk want to invest in the UK economy and are often not paying their taxes.

But yes, how utterly idiotic to suggest the renter (who may not be the most savvy finance person in the World) withholds taxes on behalf of the landlord and pays them on behalf of the landlord. Just gob-smacking. Getting the tenant to pay the rent reliably is a battle in itself, let alone getting them to make quarterly submissions to HMRC!

As far as I can see, a person can be paying the rent from benefits and it is they who have to withhold tax for the landlord! EH!? Total bollocks.

Dec 17, 2014 01:01
Mikek1300gt

The other doozy here, if my assessment is correct (it may not be) is that those who find out about this the hard way will be hit on two levels. Firstly there will be fines and penalties and secondly, because exemption from the NRLS was not sought before the tenancy began, the tax will be 20 percent with ZERO option to reduce this against valid expenses as would be the normal way.

Lordy only knows what will happen to the tenant who should have been making quarterly returns to HMRC. I can't be bothered to wade through this to find out.

Over the years I had tenants who could not earn a living or tie their own shoelaces and now they are supposed to be taking tax deductions on behalf of the landlord and make quarterly submissions to HMRC?

Total madness.

Dec 17, 2014 01:16
red

Sounds like you need a decent agent who can apply for rent to be paid as gross then keep decent accounts.

Dec 17, 2014 09:33
anon100

I can't really see anything new on the HMRC website. The rules applying to rent net or gross of tax and applying for an exemption have been in place for years. We left the UK over 4 years ago and completed the relevant tax forms and applied for an exemption for the rent to be paid gross and received this without any fuss. We have been completing our self assessment forms since.

I am curious that there are expat UK landlords that are not registered for self assessment and have therefore not been completing self assessment forms each year. That means they haven't been declaring their rental income to HMRC? Unless there is some other way to declare that income that I don't know about?

Dec 17, 2014 10:02

Pages