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How do I show that a Landlord lives overseas?

Zenya Allen
Zenya Allen
  • Updated

The steps below show you where to update the Landlord Information, Tax tab for your Landlords who live overseas. You can also:

  • Add their approved NRL number
  • Add their VAT status
  • Deduct tax where an approval number has not been supplied
  • Deduct a fixed amount of tax if requested by the Landlord
  • View a list of overseas transactions

It's important to activate the NRL in User Defaults. This will enable you to provide the required reporting and collect tax to the HM Revenue & Customs HMRC. Both the quarterly and annual reports must still be produced for the HMRC even if it is a nil balance.
For more information on Non-Resident Landlords NRL - Overseas Tax, click here

 Best practice

If your Landlord owns the Property jointly with another party i.e. partner, spouse or sibling etc, they should be added on two separate Landlord Information records, then activated as joint ownership, as tax is reported individually to the Non-Resident Landlords Scheme
For more information on How do I show that a property is owned by more than one Landlord, click here

This article includes: 

Record overseas information

  1. Double click Landlords from the side menu
  2. Search for the relevant Landlord using Search Text by Name, Code or Status
    1. Alternatively, find the Landlord using Additional Options from the dropdown menu
    2. Or select a Branch if multi branch is set up on your CFPwinMan
  3. Select the Landlord
  4. Select the Status of Overseas from the dropdown menu
  5. Click the Tax tab
  6. Tick Overseas
    • A warning message appears informing you that all future transactions will be processed for NRL tax 
    • CFP will consider the Landlord as overseas from the date when this box is ticked
    • On ticking the box, the Landlords name and 100% will be entered automatically into the NRL Approval Details section
    1. Approval Number - If the Landlord has provided you with an official letter from HMRC with the Approval Number, enter it here. This will prevent the Landlord being charged tax
    2. NRL Tax Retention - If there is no Approval Number, enter the current tax rate
    3. Fixed - Only if the Landlord asks you to deduct an additional amount of tax, enter the amount
  7. Click the disk icon, Save this record, on the toolbar

Repeat this process for any additional owners of this Property.

VAT information

As per the regulations, the VAT status of your overseas Landlord must be identified.

If the Landlord pays tax, set the VAT information as applicable.

  • Registered
    • If the Landlord is VAT Registered in Status, select Registered from the dropdown menu and add their VAT number
    • No NRL tax should be applied to the VAT portion of any receipts or expenses. This is because the Landlord will already be accountable to the Inland Revenue for these VAT amounts and any deductions/credits
  • Not Registered
    • If the Landlord is NOT VAT Registered in Status, select Not Registered from the dropdown menu
    • NRL Tax must be debited from the VAT portion of any Receipts, and must be credited on the VAT portion of any expenses
  • Unknown
    • This is the default Status. If you don't know for certain the VAT status of a Landlord, keep the status as Unknown
    • This status automatically deducts NRL tax from the VAT portion of any income but does not credit NRL tax against the VAT portion of any expenses

 Best practice

It's recommended that the Landlords VAT status is ascertained before you start collecting rent, to ensure the correct tax is charged

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View a list of overseas transactions

On the Landlord Information, there is an NRL a/c button which will give a listing of the tax retained from the Landlord, any brought forward tax, and any paid to HMRC. 

If NRL has been activated, you will be able to view the NRL a/c information.

  1. Double click Landlords from the side menu
  2. Search for the relevant Landlord using Search Text by Name, Code or Status
    1. Alternatively, find the Landlord using Additional Options from the dropdown menu
    2. Or select a Branch if multi branch is set up on your CFPwinMan
  3. Select the Landlord
  4. Click NRL a/c 
  5. You will be prompted to include incomplete transactions or not
    • These are any income received and payments made that have not yet been paid to the Landlord or HMRC. They will appear in red and be due to HMRC for the relevant quarter
    • If a Contractor bill has been raised, this will also appear in red, but the tax portion will not be deducted from the amount due to HMRC until it has been paid. These items are in red, as until HMRC, the Landlord or the Contractor has been paid, the overseas tax position of the Landlord may change, thus altering the amounts due/reclaimable
    • Comp codes of HLSEA indicate the tax that has been deducted before NRL had been activated or that a manual retention of overseas tax on a Landlord statement has been done
    • Once NRL has been activated, the individual items of income & expenses are shown with their gross amount and tax amount