NRL1 advice

Old Sep 11th 2019, 1:36 am
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Default NRL1 advice

I might be in a bit of trouble here. I have rented out my UK property since moving here in 2010. I do this through a UK letting agent. They did not advise me about the need to complete NRL1. I had no clue this was a requirement or even existed until I spoke to a friend that recently moved here from the UK.

I have completed all UK tax returns on time stating accurately the rental income - and my address shown on the tax returns is my US address. I know that I now need to complete NRL1 but am unsure as to the consequences that await me. Would I be better off speaking to a solicitor in the UK first or just submit NRL1 and deal with the consequences that arise?

Does anyone know what is likely to happen?
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Old Sep 11th 2019, 4:13 am
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Default Re: NRL1 advice

Originally Posted by EricK View Post

Does anyone know what is likely to happen?
I do not......but am wondering whether you’ve been declaring the rental income on your US tax return?

(And filing an FBar with Treasury Dept.if required)?


Don’t mean to add to your distress...but it’s probably best to understand exactly what may or may not be necessary in order to come into compliance in both countries

Last edited by MMcD; Sep 11th 2019 at 4:33 am.
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Old Sep 11th 2019, 7:52 am
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Default Re: NRL1 advice

The NRL1 is a problem for the letting agent because they have failed to withhold UK tax. That is their problem, not yours. Your obligation is and remains to report worldwide income in the US and UK source income in the UK.
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Old Sep 11th 2019, 10:32 am
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Default Re: NRL1 advice

Yes I have been declaring the UK rental income on my US filing, completing FBAR etc so everything is in order this side of the pond - it’s just the NRL1 that I haven’t completed.

The tenancy agreement is with the UK letting agent although it’s let only / not a managed service - meaning the tenant puts the rental income directly into my UK bank account. Is the onus still on the letting agent to collect tax on the rental income in that scenario?
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Old Sep 11th 2019, 3:23 pm
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Default Re: NRL1 advice

Originally Posted by EricK View Post
Yes I have been declaring the UK rental income on my US filing, completing FBAR etc so everything is in order this side of the pond - it’s just the NRL1 that I haven’t completed.

The tenancy agreement is with the UK letting agent although it’s let only / not a managed service - meaning the tenant puts the rental income directly into my UK bank account. Is the onus still on the letting agent to collect tax on the rental income in that scenario?
Sounds like you're at least in compliance as far as taxes owed- and that the issue in UK will be more administrative / record keeping (which doesn't mean form should not have been filed)...but fines, if any, would, hopefully, be minimal...

Try this forum. It's designed primarily for US expats in UK ....but I still think you'll probably find the answers you seek there:

https://talk.uk-yankee.com
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Old Sep 11th 2019, 8:56 pm
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Default Re: NRL1 advice

I found an HMRC phone number related to the issues you raise:

Non-Resident Landlord Scheme Helpline:
03000 516 644
or if you are calling from abroad:
+44 300 051 6644

It looks as though *YOU* are the one who should have been filing Form NRL1i each year.
But I think you already realise that

what a bummer
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Old Sep 11th 2019, 10:44 pm
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Default Re: NRL1 advice

Thanks for that - I need to decide the best course of action, just file NRL1 now and await response from HMRC, contact them by phone first to advise of the situation, or consult a tax solicitor in UK.
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