Month: November 2017

Tenant paying rent to a non-resident Landlord directly – no agent involved

Gross rent can only be paid to the landlord after written confirmation is received from HMRC by the tenant.

Process:

Landlord will contact HMRC (Non-resident telephone helpline) and give details of tenant. Then HMRC will write a letter to the tenant authorising them to pay gross rent without deduction. Till then rent can only be paid after deduction of tax at basic rate (currently 20%).

Sample letter below:

Sample NRLS Approval Letter

Change of tenant or agent

Landlord or his tax agent needs to call HMRC NRLS Helpline on 0300 322 9433 and inform them about the change. Before the call get Agent’s NA number as HMRC will need it to send the authorization letter to the right agent.

PAYE Tax Code change resulting in employer being out of pocket

My client employs a nanny for his children. This used to be nanny’s second job and we were using `BR` tax code to process her salary.

She left her first job, making this her only job. We advised her to call HMRC to get her tax code changed. HMRC sent us a notification with the changed tax code.

On changing her tax code on the payroll software it resulted in a massive refund for the nanny. This refund employer has to pay from his own pocket.

This client has only one employee and after change of tax code future months PAYE bill would also be zero thus no scope of set off with future months PAYE bill.

I called the employer helpline, they were very helpful and they advised me to apply for a funding via link: https://www.gov.uk/payroll-funding

Via this link either employer or agent can apply for funding.

HMRC advised me that if the application was approved, funds would be credited in the nominated account in circa two weeks’ time from date of application.