I know there are some non-resident landlords here and some are quite experienced.
I wonder how can HMRC know that you’re not living in the UK anymore?
Don’t think there is any way they can check this systemically, can they?
Is it fully subject to landlords being honest here?
If you go to live abroad you need to give your new oversees address to HMRC… in fact I think you need to inform them you won’t be a uk resident for tax purposes. Then they know…
If you are not a higher rate tax payer they will agree to not having the tenants or agent discount 20% of rent for tax. You need to apply with a form.
There are rules for sending your tax return if you live abroad as well. You can’t use the online portal for instance.
I rented my property out and moved abroad and didnt tell the HMRC . I just submitted my tax returns online as normal and just wrote 0 when asked how many days I’d spent in the U.K.
No one noticed or mentioned it
wow…
Are you sure this won’t come back and bite you later?
I would say that they are unlikely it to investigate if you are paying the tax that is due. Obviously wouldn’t advise doing it, but HMRC have enough on their plates without investigating cases for no reward.
Don’t think it’s an investigation for no reward because resident landlords get an annual tax allowance which is about 12k; 20% of that is £2400 tax.
Unfortunately it’s not until you get pulled on a unrelated issue and they then find you have been overseas and not told them ,that’s when your problems start !
I would agree!
I think practically I can get away with not telling HMRC as I can provide a UK address on the tenancy agreement; effectively making me a resident landlord and it means I can get my annual tax allowance which will save me a few thousands pounds a year. But I am NOT going to do it because I’ve had to deal with HMRC before for something that happened a long time ago; I eventually paid a lot of money to HMRC to resolve it. Probably didn’t have to pay either as most of those in the similar position didn’t but I did earn a lot during that period so just needed some peace not wanting to regularly dealing with HMRC.
I can tell the person from HMRC was shocked that I agreed to pay such a large amount on the phone
So you we caught fiddling the hmrc and were given a fine on top of what you owed?
Wasn’t any fine; just some “unpaid” tax HMRC thinks I owe them.
It was one of those schemes many IT people used many years ago; don’t think many people paid but unsure what happened eventually. I just stopped following it after I paid.
If you are British or EU citizen you get the personal allowance anyway… Tax on your UK income if you live abroad: Personal Allowance - GOV.UK
Well HMRC know much more than you think-they have sophisticated computers that can track, link & cross reference take care with deposit companies who will share information with HMRC & then an investigation is launched based on what they know, also be aware that there are most likely HMRC also may track OpenRent to identify sources? Deposit companies can share info without breaking data protection, so choose your deposit company with care ask your see their privacy policy, they won’t tell you they give your details they won’t like you asking them questions on this matter either. It then gets linked to your NI number then against your declared earnings… fines are heavy & if you think you’ve got away with it they can go back 7yrs-they’ll want their money within 28 days or else?
Estate Agents are also obliged to pass on data
Errr, if you go overseas it makes no sense not to tell HMRC you are no longer UK tax resident or else you will end up paying double tax. So yes, you could not tell them you are overseas but in that case they will expect you to keep paying tax, or else they will expect to be able to tax you on the chargeable gain on selling the property if you stop declaring rental income.
Yes but when HMRC tell you the source is Deposit scheme a little bell rings
No deposit lodged no s.21 they arnt daft.
Anyone here knows will HMRC write to you about NRLS number application or they will tell you online via their app or the HMRC online portal?