Landlord tax FAQs

On the BACs and Cheque Run, why does the landlord tax due to HMRC not match the figure on NRLY Annual Tax Report?

The landlord NRLY report for the tax year shown on screen will run the tax balances up until the present date - therefore, when running this report mid-tax year, it is advised to export the report based on the quarter which is being paid

For example, the tax payments due for Q1 to HMRC have been completed and prepared - to mirror the figures to the financial NRLY reports and see the figures paid for the specific quarter:

• Right-click Annual Tax Report (NRLY) and select the relevant tax quarter

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When a landlord has been overcharged/undercharged tax, how can I correct this?

Ensure the Deduct tax from and Deduct tax to dates are correct on the landlord ledger, as the dates entered determine the overall calculation of the running balance on the account - the two date ranges determine whether to charge or refund tax to the landlord accordingly

From the landlord record:

• In the Financial panel, click edit (pencil) icon

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• In the Non-Resident Landlord panel, adjust the Deduct tax from and Deduct tax to dates accordingly and click Accept to save

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I have adjusted the ‘deduct tax from/to’ dates on the landlord financial screen but this has not been reflected on the account - why is this?

• Is the adjustment in line with the current tax year?
  The system will not calculate any adjustments for previous tax years on the ledger, as any live calculations will relate to the current tax year only - anything prior to the current tax year will need to be dealt with by the landlord directly with HMRC

• Does the landlord ledger contain any recent transactional activity since the change?
  If not, we would advise that the system adjusts the tax amount due based on the running-balance of the landlord ledger - therefore a recalculation will take place once further income/expenditure has been applied to the account - the system will then automatically add on the tax adjustments, based on the changes made to their financial status

Where can I find a breakdown of transactions, explaining in detail how the system has arrived at the final balance due to pay for NRL tax?

See this guide for more information:
Tax exception report - including tax calculation explanation (UK only)