House let in England - NRL1 form
#1
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Joined: Jan 2009
Location: Ottawa, ON
Posts: 19
House let in England - NRL1 form
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
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
#2
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Joined: Jul 2007
Location: White Rock BC
Posts: 11,684
Re: House let in England - NRL1 form
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.
#4
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Location: Ottawa
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Re: House let in England - NRL1 form
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!!!!
#5
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Re: House let in England - NRL1 form
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?
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?
Last edited by brian_munich; Jan 13th 2009 at 5:03 pm.
#6
Re: House let in England - NRL1 form
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
#7
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Location: Ottawa
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Re: House let in England - NRL1 form
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.
#8
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Joined: Dec 2004
Location: Ottawa
Posts: 1,664
Re: House let in England - NRL1 form
Just noticed you're in Ottawa - welcome! Been here long?
#11
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Re: House let in England - NRL1 form
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?
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?
#12
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,684
Re: House let in England - NRL1 form
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.
#13
BE Forum Addict
Joined: Dec 2004
Location: Ottawa
Posts: 1,664
Re: House let in England - NRL1 form
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?
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?
#14
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Thread Starter
Joined: Jan 2009
Location: Ottawa, ON
Posts: 19
Re: House let in England - NRL1 form
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.
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.
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.
#15
Re: House let in England - NRL1 form
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
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