How you pay tax on rental income on residential property in the UK
You can get your rent either:
- in full and pay tax through your annual self-assessment - if HMRC approves you to do this
- with tax already deducted by your letting agent or your tenant at source
If you want to pay tax on your rental income through annual self-assessment and not by deduction at source then you are required to complete a Self-Assessment form annually and also complete form NRL1i and return it to the HMRC. If they then give approval to us, as your letting agent, to pay rent gross of Tax, for all future years you will need to declare your rental income in your Self-Assessment tax return.
HMRC will not approve your application if your taxes aren’t up to date, for example if you are late with your tax returns or payments.
To assist you can either:
- complete your details below,
- ( a form is required for each applicant if the property is held in joint names and they must be individually submitted to us).
- Upon receipt, we will populate an HMRC application along with all of your property details including legal dates of ownership and rent due.
- We will then return a PDF of the document to you for signature which will need to be posted or couriered back to us in original form.
- We will handle the application to HMRC through to approval and will retain a copy of the approval on file, as well as sending a copy to you.
- We do charge a fee for this service of £50.00 which can be debited from your rent account with us if you choose.
- OR follow this link to the HMRC website and complete the application yourself.
- You can submit this online by opening a government gateway account, or alternatively you can use the postal form. ( please retain a copy with this option).
- You can ask us for any details of your property at any time.
- There is no fee for this method, but you must retain all records and follow through your application, as we cannot pay your rent without deducting tax until we receive the approval number from the HMRC.
- Each individual must obtain an approval number whether you own a share of a property orown it in your name only.
- You only need one approval number per person irrespective of how many properties you receive rent from in the UK and no matter who manages them for you.
- If you are a first time client of ours but own other properties on which you receive rental income, and have already been approved, we only require that approval number and no further application is necessary