I pay my landlord £2,500 per month to rent a four-bedroom house in Berkshire. I’ve recently found out my landlord moved abroad last month but didn’t tell me. I don’t know how long my landlord plans to stay abroad. I’ve heard from a friend that I may need to register for the non-resident landlord scheme (NRLS) with HMRC and deduct 20% from my future rental payments. Is that correct? 

Arthur Weller replies:  

You can read about the NRLS in HMRC’s Property Income Manual at PIM4800. You need to do the following: (a) Check whether you pay the landlord directly (not via a UK agent). If you pay via an agent, then it is the responsibility of the agent to register for the non-resident landlord scheme. (b) If you pay the landlord directly, then contact the landlord to ask if they have applied for approval to receive rent gross and to see if HMRC has issued written approval. (c) If there’s no approval, you should: (1) Register with HMRC to operate the NRLS as a tenant. (2) Start deducting 20% from the rent when you pay it. (3) File quarterly returns (NRLQ) and pay the withheld tax to HMRC. (4) File an annual return (NRLY) and issue an NRL6 certificate to the landlord.