NRL1 advice
Sep 11th 2019, 1:36 am
#1
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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?
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?
Sep 11th 2019, 4:13 am
#2
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Re: NRL1 advice
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
(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.
Sep 11th 2019, 7:52 am
#3
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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.
Sep 11th 2019, 10:32 am
#4
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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?
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?
Sep 11th 2019, 3:23 pm
#5
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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?
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?
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
Sep 11th 2019, 8:56 pm
#6
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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
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
Sep 11th 2019, 10:44 pm
#7
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Location: Stamford, CT
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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.
