marco_c Posted February 5, 2010 Report Share Posted February 5, 2010 hello everybody! i have a property in uk (liverpool) and i'd like to let it out if i live with some friends in another property in a different city (glasgow) as guest how can i demonstrate that i am a resident in uk? is it possible to be resident without any job? do i need any document to prove it? thanks for your replies marco Link to comment Share on other sites More sharing options...
snorkerz Posted February 6, 2010 Report Share Posted February 6, 2010 hello everybody! i have a property in uk (liverpool) and i'd like to let it out if i live with some friends in another property in a different city (glasgow) as guest how can i demonstrate that i am a resident in uk? is it possible to be resident without any job? do i need any document to prove it? thanks for your replies marco You don't need to be 'resident' in the UK to rent out your property, but you do have to have an address in England or Wales where legal documents can be served (Section 48 of the Landlord & Tenant Act 1987). Scotland would not be acceptable (different legal juristriction) If you want to be a "resident landlord" because tenants of "resident landlords" have less rights, then you have to live at the rented property as your main or only address and share basic facilities with your tenants. Link to comment Share on other sites More sharing options...
marco_c Posted February 7, 2010 Author Report Share Posted February 7, 2010 You don't need to be 'resident' in the UK to rent out your property, but you do have to have an address in England or Wales where legal documents can be served (Section 48 of the Landlord & Tenant Act 1987). Scotland would not be acceptable (different legal juristriction) If you want to be a "resident landlord" because tenants of "resident landlords" have less rights, then you have to live at the rented property as your main or only address and share basic facilities with your tenants. hello! thanks for your reply i saw the section 47 & section 48 where i can read: ensure there is a clause in your tenancy agreement that states "that for the purposes of Sections 47 and 48 of The Landlord and Tenant Act 1987 the landlord's name and address is:" it would be difficult for me moving from a place to another sometimes even abroad should it be enough if i use a letting agency and i give them the address of one of my friends in london or in liverpool where i usually stay as guest? thanks for your replies marco Link to comment Share on other sites More sharing options...
Lyndon Posted February 8, 2010 Report Share Posted February 8, 2010 Hi Marco If you use an agent to let and manage the property then notices from the tenant are served at their business address since they can act for you. If you go abroad you then become a Non-Resident Landlord and need to get Inland Revenie approval otherwise the agent (or your tenant if there is no agent) has to deduct income tax from your rental income. Apply for this well in advance since it can sometimes take a month or longer to get approval. If you use an agent make sure you agree with them a level of expenditure, what happens in an emergency and how to contact you if they need to. If you are going abroad then email would be simplest but you should then check your email daily. Link to comment Share on other sites More sharing options...
marco_c Posted February 11, 2010 Author Report Share Posted February 11, 2010 Hi Marco If you use an agent to let and manage the property then notices from the tenant are served at their business address since they can act for you. If you go abroad you then become a Non-Resident Landlord and need to get Inland Revenie approval otherwise the agent (or your tenant if there is no agent) has to deduct income tax from your rental income. Apply for this well in advance since it can sometimes take a month or longer to get approval. If you use an agent make sure you agree with them a level of expenditure, what happens in an emergency and how to contact you if they need to. If you are going abroad then email would be simplest but you should then check your email daily. Hello Lyndon!!! thanks for your reply. i really appreciate being a no resident is it better to let the property out with the bills included in the rent or excluded ? if you pay the bills for the tenants you should be able to deduce them if the tenants pay them you should't be able what do you suggest? but i am not sure about it i tryed to understand if i can deduce totally the amounts of the bills, insurance, repairs for the heating systems, rewiring, the letting agency's fee or only a percentace i saw this example: Example 1 Anytown Lettings Ltd is due to collect rental income of £5000 a quarter for Mr Anderson, who is a non-resident landlord. In one quarter it collects only £2500. It pays out £200 for gardening and cleaning. The calculation is: Rental income received £2500 Less deductible expenses paid £200 £2300 Basic Rate tax on £2300 (22% for 2001/02): £506 but i can't understand if the 200 pounds for gardening refers to an invoice of 200 or if 200 is percentage of the total amount of the invoice thanks a lot marco Link to comment Share on other sites More sharing options...
Chestnut Posted February 12, 2010 Report Share Posted February 12, 2010 Marco, I would expect the £200 in your example to be a full amount, not a percentage. For tax purposes you deduct the full amount of your allowable expenses from gross income for the year to declare net income. You should not claim set-up costs for a first tenancy. The UK HMRC guidance notes and working sheet included with tax return form explains how to declare UK property income and indicates what categories of espenses you can deduct and how to enter the three figures (gross, net, expenses) on the return. If in doubt ask HMRC. Look out for any tax rule changes at each budget time. Link to comment Share on other sites More sharing options...
Lyndon Posted February 20, 2010 Report Share Posted February 20, 2010 Hi Marco Sorry I was unable to reply earlier but I have not had internet access for nearly a week. None of our non-resident landlords include bills and see no reason to. I would not advise any of our clients to include bills unless they are letting bedsits or rooms in a shared house. If you include bills, what is to stop tenants leaving the heating on 24 hours a day - after all they are not paying for it are they? Link to comment Share on other sites More sharing options...
marco_c Posted February 21, 2010 Author Report Share Posted February 21, 2010 Hi Marco Sorry I was unable to reply earlier but I have not had internet access for nearly a week. None of our non-resident landlords include bills and see no reason to. I would not advise any of our clients to include bills unless they are letting bedsits or rooms in a shared house. If you include bills, what is to stop tenants leaving the heating on 24 hours a day - after all they are not paying for it are they? hello everybody! thanks for your replies i really appreciate about the property it has 3 bedrooms and i'd like to let it out at around 300 each bedroom bills included or maybe less than 300 and in the near future with a loft conversion (bedroom and bathroom) it can have 4 bedrooms and 2 bathrooms i was checking a web site about landlord tax Maintenance and Repairs: "Note that costs for general improvement of your property can not be included. Repairs and general maintenance specifically for the property may be." Water and Rates: Where these are not paid by the tenant, you can include these, including Council tax. Make sure you keep the bills. Agents Fees: These can be deducted as can any management fees you pay. that's why i wanted to pay the bills is it a good idea? see you soon cheers marco Link to comment Share on other sites More sharing options...
Lyndon Posted February 21, 2010 Report Share Posted February 21, 2010 Marco, the only person who can decide whether to include bills is you. You need to research the market in your area. Look online and see if similar properties have bills included. There are pros and cons for letting as rooms and again you need to research your area's market. I know we have a market for 3 beds but very little for single rooms. Talk to a couple of agents and ask their advice. They should be happy to help particularly if you want them to manage the property. Choose an agent that you feel comfortable with, not necessarily the one with the swanky office! Link to comment Share on other sites More sharing options...
marco_c Posted June 11, 2010 Author Report Share Posted June 11, 2010 Marco, the only person who can decide whether to include bills is you. You need to research the market in your area. Look online and see if similar properties have bills included. There are pros and cons for letting as rooms and again you need to research your area's market. I know we have a market for 3 beds but very little for single rooms. Talk to a couple of agents and ask their advice. They should be happy to help particularly if you want them to manage the property. Choose an agent that you feel comfortable with, not necessarily the one with the swanky office! hello everybody! thanks a lot i really appreciate your reply i have another question in the form for the HM Revenue & custom i see the question 19: "approximately how much uk rental income do you receive each year?" (a) before deductions and (B ) after deductions should i write 0 being the first year or should i fill it with the rent collected in may and june of 2010 or something different? thanks a lot marco Link to comment Share on other sites More sharing options...
Chestnut Posted June 11, 2010 Report Share Posted June 11, 2010 What does Q 19 actually ask? And which form are you looking at? There are several! The latest tax return would refer to year ending 5th April 2010 for gross and net income up to that date, not beyond. If asking for an approximate figure for current year your gross could be estimated as 12 times current monthly rent and net would be gross minus all your estimated costs for year (e.g. mortgage interest, insurance, maintenance, etc. during tenancy). Come next year you would be putting in the actual figures. The notes with the form should tell you this much better than I can! Link to comment Share on other sites More sharing options...
marco_c Posted June 11, 2010 Author Report Share Posted June 11, 2010 What does Q 19 actually ask? And which form are you looking at? There are several! The latest tax return would refer to year ending 5th April 2010 for gross and net income up to that date, not beyond. If asking for an approximate figure for current year your gross could be estimated as 12 times current monthly rent and net would be gross minus all your estimated costs for year (e.g. mortgage interest, insurance, maintenance, etc. during tenancy). Come next year you would be putting in the actual figures. The notes with the form should tell you this much better than I can! thanks for replying me so quickly i really appreciate the letting agency asked me to fill this form hmrc.gov.uk/cnr/nrl1.pdf to send it to the custom revenue being a no british resident and the custom revenue needs the point 19 filled unfortunately in the notes i can't see any informations about it The form is a declaration of rental income for landlords who rent out property in the UK but normally live out of the UK. the tax return would refer to year ending 5th April 2010 for gross and net income up to that date, not beyond. so basically i should write 0 pounds because i haven't got any rent since may 2010 am i right? many thanks marco Link to comment Share on other sites More sharing options...
Chestnut Posted June 12, 2010 Report Share Posted June 12, 2010 I have looked at the form nrl1 and guidance notes and see why you ask. This form is not a tax return. If you only started receiving rent in May 2010 I think you should state your estimate of gross rent (12 X monthly) and net income (gross minus estimated costs) for a full year to next April 2011. Writing in 0 pounds for last year would not be helpful to HMRC. What answer did you give to Q 12 ? I have no experience of n.r.l. situation. Only trying to help you with a form. You should seek advice from someone familiar with this. Link to comment Share on other sites More sharing options...
Lyndon Posted June 13, 2010 Report Share Posted June 13, 2010 The NRL1 is simply an application form to receive rent without tax deducted so estimate the rent you will receive in the coming year. Without it any agent will have to deduct tax at standard rate. So the sooner you fill it in the better. Link to comment Share on other sites More sharing options...
marco_c Posted July 30, 2010 Author Report Share Posted July 30, 2010 Hello everybody! Thanks a lot for your replies About the property I bought in uk the last December, the letting agency is managing it The rental income has started from the 27/04/2010 I filled the form to get the NRL1 and the P85 being a no-resident landlord Now I received a self assessment – notice to complete a tax return for year ended 5 April 2010 Basically till the 5 April 2010 I didn’t receive anything Do you think I need to fill it even if I filled the others? Thanks a lot marco Link to comment Share on other sites More sharing options...
Melboy Posted July 31, 2010 Report Share Posted July 31, 2010 The short answer is yes you do even though no rental income has been received. The time of ownership will qualify you for any tax relief should you return to the UK and then decide to sell the property. HMRC have a complicated formulae for selling property and tax relief for ex-pats which I couldn't begin to understand.......easily! Mel. Link to comment Share on other sites More sharing options...
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