Accountants for non resident landlords
ZahTax Accountants is an independent firm of Chartered Certified Accountants providing Non-resident Landlord tax Services. We have a specialist team of property tax experts who can help with all your landlord tax compliance in the UK.
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Our expert team has in-depth knowledge about the non resident taxation. It can provide solutions for all types of non resident landlords, such as single or multiple property landlords, HMO serviced apartments, and student accommodation.
Who is a non resident landlord for UK tax purposes?
If you live outside the UK for more than six months and rent out a UK property, you will be a non resident landlord. We can group such non-resident landlords into two categories:
- Those who are British nationals temporarily or permanently move abroad for any reason, such as employment, business or other family reasons. There are currently 5.5 million people living abroad in different countries, mainly in The Republic of Ireland, Spain, France, Germany, Italy, Australia, New Zealand, Canada, United States, South Africa.
- Those who are foreign residents and/or nationals and have invested in the UK property market. They may own a single or several property which they rent out to generate some rental income on their investment.
Do I need to payany taxes on my rental income if I am a non resident landlord?
The answer is ‘YES’. Whether living temporarily or permanently abroad, if you are generating any rental income in the UK from UK property, you are required to pay your taxes in UK. The UK tax is due on your rental income, regardless of your nationality and residency status. You may be able to get some tax relief depending on the country you live in.
How are the Non-resident UK landlord tax will be calculated?
The UK tax will be calculated on the profits you make from your rental property.
Example: Suppose you are renting your property for £1,000/month. Your gross rental income would be £12,000/year.
You would be able to claim the expenses related to your rental property and rental activity. Let's suppose you have incurred the following expenditures:
| Estate agent fee | £1,200 |
| Service charges | £800 |
| Ground | £200 |
| Other expenses | £500 |
| Total expenses | £2,700 |
Your rental profit would be £9,300 (£12,000 - £2,700). You will pay tax on your rental profits of £9,300.
What are the tax rates on UK Rental Income?
The tax rates on UK rental income depend on which income bands your rental income falls in. If you are eligible for UK Personal allowances, the tax rates applicable on your non resident UK rental income would be:
| Personal allowances | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £150,000 | 40% |
| Additional rate | over £150,000 | 45% |
If you are NOT eligible for UK Personal allowances, the tax rates applicable on your non resident UK rental income would be::
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £150,000 | 40% |
| Additional rate | over £150,000 | 45% |
Registration as a non resident landlord and Non resident landlord scheme
If you are non resident in the UK and have rental income, your estate agent/tenant should deduct 20% tax from your rent. They will pay this tax to HMRC on your behalf in relation to your rental income. You may need to consider registering yourself as a non resident landlord to receive your rent without deduction of any tax. If you register as non resident landlord with HMRC, the estate agent/tenant will not deduct any tax from your rent.
Deadlines
Non resident landlords are rquired to file their self assessment tax return every year. The relevant tax period for non resident landlords in the UK starts on 6 April and end on the following 5 April. The deadline to submit the tax return for such period is the following 31 January, after the end of the tax year. For example, for the tax year 6 April 2022 to 5 April 2023, the deadline to submit the tax return and to pay any taxes is 31 January 2021.
Why choose ZahTax for your non resident landlord tax services?
- Qualified Chartered Certified Accountants
- HMRC Authorised Agent
- Specialist team for preparation taxation
- HMRC Authorisation accounting software for the preparation and submission of your tax returns
- GDPR compliant
How our Landlord tax services can help you?
Our team of specialist non resident landlord tax accountants can provide you with the following services:
- Register you as a non resident landlord with HMRC
- Preparation of your rental property accounts
- Calculation of taxable rental profits and the tax liability due
- Determining whether you eligible for UK personal allowances
- Preparation and submission of your non resident landlord tax return using our approved HMRC authorized software
- Appointing Zahtax Accountants as your authroised agent
- Reminders for all the important deadlines
- Dealing with all HMRC correspondence on your behalf