Guest kazzy01 Posted August 17, 2007 Share Posted August 17, 2007 Don't know if anyone is in the same situation as me and can maybe help with a tax question I have. I have a flat in the UK which is rented out through a lettings agency. Of course I have an income tax liability, but they are saying that they will withhold tax of 22% from the rental income from me until I have completed and filled out a NRL1 form from the inland revenue. I have printed this off today and it relates to non UK residents, not UK residents. Although I am in Australia on a residency visa, I will be returning home for good in December and therefore have not informed the UK Inland Revenue that I am currently residing in Australia (I have gone travelling for 6 months in the last couple of years and had no issue with this). Can anyone tell me what will happen if I do fill out this non resident form ? Are the lettings agency within their rights to withhold this money from me? I know I will have to file a tax return in the UK in January when I return home and will declare the rental income. Thanks for your help with this! Link to comment Share on other sites More sharing options...
Guest Liam Posted August 21, 2007 Share Posted August 21, 2007 Kazzy You either are or aren't tax resident in the UK. If you qualify as a tax resident then all you need to do is tell them that you are resident for tax purposes. If you are not resident then they are right to ask for the form to be completed. The rules are complex, and your position will depend on the facts. But the main rule is broadly that you are UK resident if you spend 183 days or more in the UK in a tax year. You should check out the rules applying to your particular circumstances Have a l,ook at this site for more information HM Revenue & Customs: International - Frequently Asked Questions and Read the Booklet IR20 which outlines all the criteria HM Revenue & Customs: International series If you are still confused then approach some like Alan at GoMatilda.com who is a Accountant qualified in UK and Australian Tax Rules. HE is also a senior member on this site so look for his details Hope these links help Liam Link to comment Share on other sites More sharing options...
Guest kazzy01 Posted August 22, 2007 Share Posted August 22, 2007 Thanks Liam. I'd forgotten that rule about how many days you reside in the country and I'm an accountant, luckily not a chartered one. I've had a quick tot up and it looks like I'm an Australian resident for this tax year then and will have to employ the services of an accountant in the UK to do my tax return there and find out what my tax liability will be! Link to comment Share on other sites More sharing options...
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