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HMRC internal manual

International Manual

HM Revenue & Customs
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The Non-resident Landlords Scheme: Tenants

What tenants are involved?

If a tenant pays rent to a non-resident landlord via a UK letting agent, it is the letting agent and not the tenant who must operate the Non-resident Landlords Scheme.

Tenants of non-resident landlords usually have to operate the Scheme only if:

  • the rent they pay is over £100 a week, and either:
  • they pay the rent direct to a non-resident landlord, or
  • they pay the rent to a person outside the UK, or
  • they pay the rent to a person who is not a letting agent in the UK.

However, Personal Tax International may sometimes instruct tenants to operate the Scheme even where the rent paid is less than £100 a week. This may happen where a landlord has several tenants and the total rent he receives is over £100 a week.

You can get more information about the responsibilities of tenants from the HMRC booklet ‘Non-resident Landlords Scheme - Guidance Notes for Letting Agents and Tenants’. This is available on the HMRC website (see INTM370010).

Tenants’ obligations

Tenants who are required to operate the Non-resident Landlords Scheme must:

  • notify Personal Tax International
  • account quarterly to HMRC Accounts Office, Shipley, for any tax due under the Scheme
  • (where they are required to account for tax) provide their non-resident landlords with a certificate of tax liability each year
  • complete an annual information return, if appropriate, and
  • keep sufficient records to show that they have complied with the requirements of the Scheme.

Tenants have the right to deduct any tax they have to pay under the Scheme from their rent, or from any other money owing to the non-resident landlord. They also have the right to recover from the landlord any tax they have to pay under the Scheme where they did not deduct it from their rent or other money owing.