What are a letting agent and tenant's withholding duties under the NRL scheme?

Agents register once with HMRC under the scheme and are given a reference used for all their non-resident landlord clients. The deduction is calculated on rent received less allowable expenses the agent has actually paid, such as letting fees, repairs and insurance, not the gross rent.

Payments to HMRC are due quarterly, within 30 days of each quarter end, with an annual return summarising each landlord's rent, deductions and tax withheld by 5 July following the tax year.

Where there is no managing agent, the duty falls on the tenant if rent exceeds £100 a week, though HMRC accepts many tenants are unaware of this and focuses enforcement on agents in practice. Tenants paying less than £100 a week have no withholding obligation.

A tenant who should have withheld tax and did not can be held liable for the unpaid amount, so landlords letting directly to tenants should not assume the rule is only theoretical.

Our fixed monthly packages for a UK limited company start at £89 plus VAT and run to £169 and £289 plus VAT as bookkeeping, VAT, payroll and reporting are added. One-off filings are sold at fixed prices, and the Companies House fees we pay for you are charged at cost with no VAT added. Overseas owners are quoted on exactly the same published prices as UK-resident clients.

Rates, thresholds and deadlines here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.