If you are a Landlord who is resident in the UK, your Net Income received from renting your home is subject to income tax. This is worked out depending on your total income. When completing your tax return you will need to include dilapidations and expenses such as interest on a mortgage, repairs, service charges, buildings insurance, Letting fees, and ground rents.
Income Tax
Overseas Landlords
The Non Resident Landlords (NRL Scheme) scheme is in place for taxing the UK rental income of persons whose usual abode is outside the UK for more than six months.
Some Landlords may find they can receive their income tax free by way of obtaining an Exemption Certificate. Landlords are responsible for obtaining this, and should do so at least twelve weeks in advance of renting their home.
If your property is a managed property, as your agents, will be required by the Inland Revenue to pay any tax liability on rents we collect on a quarterly basis on your behalf at source at the basic rate of 20%.
Landlords will need to complete a form NRL1 (available to download online). For managed properties, you will need an Overseas Approval Number from us to add to the form before submitting. The Inland Revenue will then contact us to confirm you can receive your rent without deductions.
Legal Matters and Tenant Difficulties
In the event of difficulty ie: the tenant is failing to pay the rent or has broken the terms of The Tenancy Agreement, we will discuss with you the steps to enforce the terms of the agreement.
We will assist with any eviction proceedings but our management fee does not cover this. We will charge fees based on time spent and our hourly rate is set out in our scale of charges. We advise you contact your solicitor to deal with the eviction process.
We will not attend Court or any Tribunal in relation to the Property as part of the regular management of the property unless agreed with the landlord, or unless as a matter of law we are required to attend.
Landlord Protection Insurance
No matter how well tenants are referenced and vetted, there is no guarantee a tenant will prove to be or remain satisfactory.
Taking a tenant to court to regain possession of the house, or the loss of rental income, can prove very costly and time consuming.
The Letting Factory can offer you Rent Guarantee and Legal Insurance. We can recommend an Insurance Company that can provide this service for you. For more information please enquire at our office.