I am a non UK resident individual but I own property in the UK and receive Rental income from this property. I was looking some advice to see if I am required to report this income in the UK and if so how do I do this?
Any letting agency that manages a property or the tenant that occupies a property belonging to a non-resident landlord has the responsibility of withholding basic rate tax before they pay the rent to the landlord, unless the landlord has received approval from HM Revenue & Customs to receive the rent gross.
In order to receive the rent gross you can complete a NRL1 form for individuals and register for UK self-assessment by completing a form SA1. You will be asked for details of your property and the tenant plus your home address and tax reference number in your country of residence. Both forms are available to download on the HM revenue & Customs website.
Once approval has been granted you will then be issued with a self-assessment tax return each year on which you will have to report your taxable rental income, which is income less allowable expenses and submit same to HM Revenue & Customs by the due date and make all relevant payments.
You will need to refer to the double tax treaty to check if you are entitled to claim the UK personal allowance against the taxable rental income and also to check if you can claim double tax relief in your own country for any UK tax paid.
Registrations with HM Revenue & Customs should be made by 6 October following the relevant UK tax year. That is 6th October 2018 for rental income received in the tax year ended 5 April 2018 and the latest filing and payment date for the tax return and any liability is the 31 January following the tax year. That is 31 January 2019 for the tax year ended 5 April 2018.
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