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:
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.
Roy Accountants 