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UK Letting agent has not been deducting tax from my rental income. help!


poolprouk

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Hello (again).

 

I've noticed (a few months back admittedly and had a feeling that i should have done something about it), that my letting agent has not deducted any tax from my UK rental income (property was first let 24 April 2013).

 

I have not yet signed up for receiving my rental income without tax deducted.

 

When i've looked into the Non resident landlord scheme i'm a little concerned as it looks like my agent should have been adminstering (and paying tax for) my rental under that scheme and they could be in a heap of trouble for not doing it. Could i be in trouble also?

 

I'd like to fix this situation! I want to pay the tax and had assumed that the time to do it would be my 13/14 UK tax return. I've filled in the form for receiving the rental income tax free but I don't have the scheme registration reference from the agent (i've asked them to look into that. I'm amazed they didn't know about it already) and i guess my tax affairs are now not up to date as I haven't paid any tax yet for 13/14 on that income.

 

Any idea what the best route out of this mess is? Ring up HMRC and plead ignorance and tell them i will pay the tax when it is assessed as part of my UK tax return for 13/14?

 

Cheers.

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I think you have this the wrong way round. Non resident landlords do not normally have tax deducted at source, you sort it out at the end of the year. From your dates you do not appear to have anything to worry about, your income was in the tax year just passed and there is plenty of time to do your tax return.

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I also think that you need not be worried. Yes, you needed to have filled out the form before receiving the income without tax deducted but that seems just an administrative error by the agent. Or maybe the agent got you to sign one at the time but you have forgotten. Either way declaring it on your 2013/14 return is the appropriate course anyway. You are well in time and any tax does not become due and payable until January 2015.

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Just to say you also declare it on your Australian tax return. You will be credited for ant tax paid on the UK assessment. The deductions are different though. Tbh I just got an accountant to do it and they got me more deducted.

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Just to say you also declare it on your Australian tax return. You will be credited for ant tax paid on the UK assessment. The deductions are different though. Tbh I just got an accountant to do it and they got me more deducted.

 

That depends on the visa - we didn't have to on a 457 but will now we are on a PR visa.

 

We registered for the non resident landlord scheme when we left. We then do all the tax returns at the end of the year and work out if we owe anything.

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