UK Landlord Forum / Life

Hi there,

I am just wondering if anyone can explain this to me.

I assume a letting agent will past on the basic rate deductions to HMRC on a quarterly fashion and at the end of the year they will provide a document explaining how much tax you have paid.

When I come to do my tax returns, I state tax paid and any further deductions such as necessary tests and any key maintenance prior to or during the tenancy to make the home acceptable for habitation within a tax year (April to April)

I assume I must evidence the bills,  or is this only necessary if HMRC ask for clarification.

Thank you

I don't know what you mean,why would the LA's get involved with your taxes? You will be charged VAT on their services each month,but it is up to you to keep records of your accounts.

NRL scheme is for landlords who will not be living in the UK for a tax year or more

Ah, I see.

It's only necessary if HMRC want to see supporting evidence. That can happen randomly (there's a certain number of queries per annum) or because their software thinks something looks unusual.

Further to this I was wondering if anyone uses the NRL scheme and hence lives abroad or has lived abroad on this forum.

It would seem I am can claim a taxable allowance? And If both my wife and I are able to do this, it would seem a huge chunk of the rent for the first property at least would be void of tax.

Hence, It may be redundant for HMRC to charge me 20 percent a quarter only to have to pay me back at the end of each tax year.

As always, I appreciate all of your sage and kind thoughts

I don't think you had much response when you asked about landlords living overseas before.I think this query really is something you need to speak to an accountant about.No two cases will be the same.

HMRC will advise what they want you to do. You can ask that you be made exempt from the deduction and repayment mechanism if it creates more work than tax, and HMRC would give you authorisation in writing that your agent would be able to accept and pass on the rent to you.