How do I produce an overseas Landlord NRL quarter and year end return?

Zenya Allen
Zenya Allen
  • Updated

The steps below show you how to create an NRL Quarterly and Annual return for your overseas Landlords. Both of these reports must still be produced, even if the tax payable is zero.

You're able to:

  • Generate Pay HMRC to initiate quarterly and yearly reporting
  • Produce the Quarterly Report NRLQ 
  • Produce the Annual Report NRLY
  • Generate an annual Overseas Tax Certificate for the Landlords differences in balance between a Landlords period statement and NRLY report
  • Produce quarterly reporting information for processing 
  • Produce yearly reporting information for processing

Its important to read every step to ensure you collect the correct information on submission of your quarter and annual reports.

This article includes: 

Pay HMRC

This routine is carried out AFTER the end of the relevant quarter or year, e.g. for quarter 1, you need to Pay HMRC on or after 1st July.

Overseas Tax is to be calculated for quarters ending June, September, December & March and due for payment within 30 days of the end of the quarter. 

Items dated after a quarter end will not appear until the end of the quarter to which they relate.  For example, a transaction dated 1st July will not appear in the listing until the end of the quarter ending 30th September.

Any late transactions, dated in the previous quarter will be automatically included in the next quarter, once HMRC has been paid.

  1. Click Postings on the main toolbar
  2. Click Pay HMRC from the dropdown menu
  3. Pay HMRC Up to Quarter End - If NRL has been activated in User Defaults, the quarter end date will display
    For more information on Non-Resident Landlords - NRL - Overseas Tax, click here
  4. A preview of all Landlords with monies held in the client account that are due to HMRC for the last complete tax quarter will appear in this list
  5. Tick ALL Landlords for them to appear on the return you need before you click Pay HMRC, even if the amount of tax to pay is £0
  6. Cash Avail - If this shows No, instead of Yes, you could be holding this money in a different bank account. The money will need to be transferred back into the client accounts. When using the transfer process, click NRL Tax
    For more information on How do I transfer money between bank accounts, click here
  7. Right-click on the Landlords name to view a breakdown of the NRL tax account included in the overseas tax amount. Right click again to return to the previous screen
  8. Click Payment Type from the dropdown menu
  9. Click Pay HMRC 
  10. Click Yes to confirm the amount and number of Landlords included 
  11. Click OK to Payment Made Successfully 
  12. Click Cancel

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Creating NRLQ and NRLY Reports

Both quarterly NRLQ and yearly NRLY reports are available, providing NRL is activated in User Defaults.
For more information on Non-Resident Landlords - NRL - Overseas Tax, click here

You will only be able to view the current quarterly report once you have paid HMRC for that quarter.

Even if there is nothing to pay HMRC, i.e. the Landlords have NRL numbers, you still need to update the quarter paying a zero amount.

This is because although the tax may be zero, the income and expenditure will still show on the report, so for accuracy it must be updated in the usual way.

  1. Click Reporting on the main toolbar
  2. Click Taxes/NRL from the dropdown menu
  3. Click NRL Reports from the dropdown menu
  4. Report Output - Click either View or Print
  5. Report Type - Click either Quarterly or Yearly 
  6. Select a quarterly period - Click and select the required period from the dropdown menu
  7. Select a year year end date - Click and select the required period from the dropdown menu
    • If the period you require is not in the list, either we are not yet past the end of the quarter, OR
    • If the period you require is not in the list, you haven’t updated Pay HMRC in the steps above
  8. Create Export File - Tick to save a .csv file, if required
  9. Include Landlord Annual Certificates - If you click Print and Yearly at the top of the screen, you will have this option. These will be printed for each overseas Landlord along with the annual report
  10. The report will identify the quarter period and include the pay ID. This refers to the number of times the Pay HMRC has been updated, the NRLPAIDID column on the Landlords NRL account

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 Did you know...

There is also a troubleshooting article on How do I produce an NRL Return? which you may also find useful

Quarterly Report additional information

The quarterly report is a printable summary of all income, expenditure and tax for each landlord for the last completed financial quarter, and will include any overseas Landlords.

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Year End Report additional information

At the end of the tax year, you can run a yearly report which summarises the income, expenditure and tax for all Landlords and shows their address and NRL numbers where relevant. This report is required by HMRC. 

You will only be able to get a complete year end report if you've had NRL activated for the full financial year and have paid HMRC for each quarter.

The other function on this screen is a printout of all landlords certificates for the financial year. Tick the box to activate this option.

This form will show the approval numbers, income, expenditure and overseas tax paid to HMRC on behalf of all relevant Landlords for the last financial year. It will also give the declaration to sign at the bottom of the sheet.

You may see a message saying similar to “Q1, Q3 missing from this report”. If this does come up, it means that the payment to HMRC was not processed on the system for those quarters. 

The yearly report will still be accurate, but you should update the Pay HMRC screen every quarter. In the case where Q4’s report is missing, it means that Q4’s tax/income/expenditure will go on to Q1’s payment for the next financial year. This will affect the yearly figures for both financial years, so is best avoided if possible.

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Create A Schedule 23 Section 18 Report For HMRC

You can create a Paragraph 1, Schedule 23 to the Finance Act 2011 Report to send to HMRC.
For more information on How do I create a Schedule 23 report For HMRC, click here

Differences between Period Statements and NRL reports

Different figures can occur between the NRL report and a Landlords period statement for the same date range. This is due to the dates of the receipts and expenses paid.
For more information on How do I produce a Period Statement for a Landlord, click here

Compliance and obligations

These notes are not designed to be a full and exhaustive guide to the NRL process and any queries regarding this should be directed to HMRC - https://www.gov.uk/tax-uk-income-live-abroad/rent

Whilst every effort is taken to ensure that CFPwinMan processes your transactions correctly, it is your responsibility to ensure that the figures you return to HMRC are correct*.  CFP Software is not liable for any errors or omissions to your data or consequential loss howsoever caused. 

* This is important since your data can get corrupted for any number of reasons, such as hardware faults, viruses, network crashes, etc, or, incorrect figures may arise due to user error.