The ‘Non-Resident Landlord Scheme’ (NRLS) requires persons who act as ‘representatives’ (agents) for the landlord to deduct basic rate tax from the net rent collected (rental income less expenses paid) unless the agent or tenant has authority from HMRC to pay the landlord gross.
The tax is paid on a quarterly basis and an information return is submitted. Payment must be within 30 days of the end of the quarter. An annual return Form NRLY must be submitted by 5 July after each tax year-end and a certificate issued to the landlord confirming tax paid by the same date. The quarters are to 30 June, 30 September, 31 December and 31 March.
