How do I set up a Landlord as NRL and then deduct Tax from the income?

To set up a Landlord as NRL:

1: From the Landlord record, go to the Financial Details tab

2: Tick the "Non-Resident Landlord" tick box

3: Once the tick box is ticked, there’ll be some additional fields that appear. You will need to complete the “NRL From” field with the date that the Landlord became NRL. 

4: If your landlord has provided you with prof from HMRC that they are exempt from tax, you will need to complete the "NRL Exemption Number" and the "Exempt From" date field

5: Do not tick the “Override Default Tax Rate” tick box OR change the "Overseas Tax (Percent)" field from its default zero. These options should only be used if the the landlord is subject to a reduced rate.

Once your Landlord is set up as NRL, any payments you make to the landlord after the date they became exempt will have the appropriate tax deducted. Tax will only be deducted at the point the Landlord payment is made in Expert Agent. You will see the tax that is set to be deducted in the property summary box on the landlord payment screen. If your landlord is set to be exempt, this field will show as a zero and no tax will be deducted.

Once the Landlord Payment has been processed, the Overseas Tax deduction can be seen on the Landlord Statement as per the below example.

Once you have deducted Tax from the Landlord via the Landlord Payments, these funds will be held in the client account until you are ready to pay them over to HMRC. You can do this via the Non-Resident Landlord (NRL) Tax section from the top finance menu - payments - NRL tax.

 You can also use the Non-Resident Landlord (NRL) Tax Report which will show you all the NRL Tax deductions that you have made from your landlord payments. This report will assist you in completing your NRLY.

If you have deducted tax from a landlord and need to refund this to them, please see here for further instructions.