2019-20 tax for small business owners and contractors
Do you own property in the UK?
Are you planning to leave the UK (whether on a temporary or permanent basis) and rent the property you have there?
In this case, you need to be aware of the NRL (Non Resident Landlord) scheme. Unless you have successfully applied to HM Revenue & Customs to receive the rental income gross, the lettings agent (or the tenant of the property if the rent is more than £100 per week) is required to deduct tax from the rental income, at the basic tax rate, which is currently 20%, and pay it to HMRC.
To have the rent paid gross and avoid overpaying tax, it is necessary to apply for exemption under the Non Resident Landlord Scheme.
You will generally be required to file a UK self assessment every year as you will remain liable to UK tax.
Relevant expenses can be deducted on the tax return and include lettings agent fees, mortgage interest, maintenance costs.
Word of caution: you will have to apply to HMRC to be entitled to your UK personal allowance (if you have one), it is not allocated automatically.
About the author
Ingrid Niang est expert-comptable britannique avec seize ans d’expérience variée en Angleterre. De nationalité française, elle a créé son cabinet FRAccountants en 2009 et travaille tout particulièrement avec des entrepreneurs, chefs d’entreprise et consultants français ou francophones ayant une activité commerciale au Royaume-Uni. Elle leur apporte un suivi et conseil sur mesure leur assurant de se conformer aux exigences comptables et fiscales britanniques.
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