The Chartered Institute of Taxation is urging tenants not to ignore a letter if they receive one from HM Revenue & Customs concerning their landlord’s tax affairs.
A so-called ‘fact finding’ letter has already been sent to some tenants that goes on to suggest that you as a tenant may have to take tax off your own rental payments to ensure the correct tax is paid if your landlord is not resident in the UK and is not registered under the UK’s Non-resident Landlord Scheme – or face a fine
The letter and questionnaire form are designed to gather information to ensure the correct tax is paid by their landlord
We are concerned that if you receive this letter you may be worried about how to respond, particularly if you do not have enough information or knowledge to answer the questions.
You may not know that the landlord’s usual place of abode is outside the UK and, even if you do, how will you know about their tax obligations? The wording at the end of the letter about errors and penalties could also alarm you especially if you are not able to answer all the questions.
HMRC suggest you should reply ‘not known’ if you do not know the information for specific questions. Your response will enable HMRC to help you if further action is required or to quickly tell you that no further action is required
If you still have concerns or remain confused by HMRC’s letter, and if you pay rent directly to your Landlord and are unsure of where they live, give us a ring or send an email to us and we will be able to point you in the right direction
Either email at www.stuartshomes.co.uk or call 0161 491 1411 and speak to one of our team.