brian_munich

Hello everybody,

Not sure if this is the right place to post this, but, as now an expat in Canada, thought i would post it here...


Have a house let in England, and am in the process of filling out form NRL1 - the non-resident landlords form.

thing is, house is let out via an agency, who take a cut, as well as VAT on that cut.

question is, on the NRL1 form, it asks for how much rental is received each year before and after deductions.
are the 'deductions' just the landlord's cut, just the VAT, or other expenses such as cleaning, ground rent etc. (the notes attached with the NRL1 form seem to state that the expenses are something that the letting agent can claim, not the actual landlord). Most confused...

any thoughts would be most welcome.

thanks

JonboyE

I think that a) before deductions is the rent the tenant pays to the letting agent. B) after deductions would be the amount you receive from the letting agent.

AndyBCbound

Correct, it is the amount you receive AFTER the agents deductions

TrishP

I stated full gross income from rent, then took rental agent's fees, maintenance fees, mortgage, insurance, etc off that amount to end up with the final net profit figure ... which was a big fat 0!!!!

brian_munich

gents thanks very much for your help,

it's just that on the notes

http://www.hmrc.gov.uk/cnr/nr_landlords.htm#44

it states that the letting agent can deduct things like ground rent, gardening etc., however I pay that after the letting agent's fees have been deducted - the letting agent doesn't pay for that.

however, if the rules state, as you say, just put the amount i receive from the agent, then so be it.

thanks again.


oh, so you CAN take off things like that - maintenance fees, gardening, repairs etc. - did everything work out ok?

AndyBCbound

I wouldnt worry too much, we put down a net profit of £200 per month after all expenses, we recieved a letter back saying we would not be liable for any tax. This was split between myself and the wife

TrishP

As I said, profit worked out at 0 pounds, so yes, it worked out very well!!! Basically, I took anything off rental income that I had paid towards the house in any capacity that could have been considered maintenance, but not necessarily upgrading work that would increase the value of the property.

TrishP

Just noticed you're in Ottawa - welcome! Been here long?

brian_munich

thanks very much.

been here about a year as it happens.
still miss proper chocolate, papers, & proper bacon, but that, presumably is a topic for another thread!

TrishP

Oh get yer bum down the road to the Scottish and Irish store, lol!

brian_munich

you must be joking - $4 for a dusty old tin of baked beans!!! still, an out of date curly wurly is ok as a treat lol !!!

however, Wal-Mart selling PG Tips now - $1.97 a box of 70 (square bags). Bargain!
- Not sure if they are English ones though, cause i'm sure they stopped making square bags in favour of the pyramid shaped ones, years ago.

Just need to get Loblaws to sell chocolate digestives & hobnobs, as well as the plain ones.

time for a petition?

JonboyE

The form asked for the rent you receive after deductions, not the net profit on the rental, so I read it as:

a) Rent before deductions

Less Agenst's fees and amounts witheld for gardening, other fees etc etc =
--------------
b) Rent after deductions

less other expenses like insurance, mortgage interest and so on =
--------------
Taxable profit

However, given the amount of money involved if a couple are renting their old home, I don't think it will be a great deal one way or another.

TrishP

Loblaws does sell McVitie's digestives and Bisto granules ... yummmmm! ... not together, lol! I fin the President's Choice English Breakfast tea comparable with Tetley back home .. and I'm Irish, I know my tea!!!! Hehe

brian_munich

i see what you mean - the question is whether the amounts for gardening, ground rent, insurance, cleaning etc. should be grouped with agent's fees or not.

this makes a difference of, say 200 pounds a month, which would make a reasonably big difference in the 'rent after deductions' box.

LynseySmith

Those of you renting out - did you have to change your mortgage to a buy to let, or could you keep your existing arrangement but just let the bank know you were renting out the property?
We are thinking of renting out and want to keep our current mortgage as it's an early tracker now on v.low interest.
Lynsey