Guest Ukmover Posted April 27, 2011 Share Posted April 27, 2011 Has anyone any experience of this? Phoned 4 Estate agents to get an idea of rental managing costs (average £400 pre new tenant and 10% running cost) and only one agent mentioned the NRLS. I do not know much about this but apparently Letting agents and Tenants have to let HMRC know about how much rent is paid and keep records. Letting Agents have to withold tax (unless an exemption from tax is allowed) after calculating deductible expenses etc. Any info would be very much appreciated. Thank you. Link to comment Share on other sites More sharing options...
sadsmile23 Posted April 28, 2011 Share Posted April 28, 2011 Hi Not completely sure of the ins and outs of this because its a while since we did it, but we rent out our house in the UK (privately). We had to let HMRC know we were emigrating and register as a Non-Resident Landlord for tax purposes. All we have had to do is fill out the form online every year, with all our expenses offset against the rent we receive - if you receive below a certain amount profit every year you do not have to pay any tax on the rental income. Any agent fees, repairs, insurance cover etc can be deducted, so the aim is to try and make sure you don't come out with a profit!!! Sorry its a bit vague, but if you look on the HMRC website they will have all the info you need there (thats where I found it all). Hope that helps Link to comment Share on other sites More sharing options...
Guest Ukmover Posted April 28, 2011 Share Posted April 28, 2011 Hi, thank you very much for your reply and useful advice. I had looked at the HMRC pages and was just a little bemused that the letting agency and tenats appear to now have an obligation to 'big brother' the landlord by reporting their payments and maintaining records. Link to comment Share on other sites More sharing options...
Gaskit Posted April 28, 2011 Share Posted April 28, 2011 Hello. I'm in the same situation as you although all the lettings agents we contacted have asked us to fill that NRL1 form. One of them would actually charge us for dealing with the tax office if we don't get that NRL1 form filled ! As Sadsmile23 explained, the NRL1 is to allow you to received your rent in full without tax deductions and then you have to fill a tax return at the end of the year where you can offset all your maintenance cost. Link to comment Share on other sites More sharing options...
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