Non-resident landlord

Hello. My parents live outside of the UK and own a private rental property in the UK since last year. The letting agency deducted tax before sending the rental income. My parents received monthly statements from the letting agency, and NRL6 Certificate for year 01/04/2023 to 31/03/2024 . Do my parents still need to register for NRLS, or submit self assessment since tax has already been deducted by the letting agent?

Not HMRC...Your parents MAY be able to claim UK personal allowances under terms of DTA (depends on nationality/where resident etc so not in all cases), which letting agents dont take in to account, and/or there may be costs not dealt with by agents. Regardless, it is usually better to receive the rent gross (NRL forms), complete the SA return annually and then pay HMRC rather than paying tax at source throughout the year. None of that affects the fact that a SA return is required each year for income from property as landlords outside of the UK.

Thank you very much Clive for your kindness to help and suggestion. My parents are not entitled to personal allowances, and almost all costs were paid via the letting agent, and there aren't much additional costs that were paid by us directly. To save the hassle of applying to receive the rent in gross, then do SA and pay tax later every year, we are happy to paying tax at source. I just wonder if the tax is already paid at source, are we still legally required to complete the SA return annually as non resident landlords? I can't really understand the necessity. Thank you

Hi
The approval does not mean the rental income is exempt from UK tax. While the rental income will be paid with no tax deducted, it is still liable to UK tax and the non-resident landlord must include it on any tax return. - Self Assessment tax returns

Hello HMRC Admin 10, I am afraid you haven't understood my question. My parents are not intended to apply for receiving rent in full, they have already paid tax at source (by our letting agent deducting 20% tax before sending them the remaining rent). My question is, in this instance, do my parents still have to submit self assessment tax returns?

Hi Ying He,
Yes, Self Assessment tax returns are needed.
Please see:
Tax on your UK income if you live abroad
Thank you.