Income Tax Calculator for BTL Investors 2019-20 is designed to assist tax payers with income from property to estimate their SA tax liability.
CIS Tax Rebate is due when a construction industry scheme (CIS) subcontractor overpays income tax due to the fact that his/her CIS tax deductions are made without taking into account their tax-free annual allowance.
If you're not a property investor, you can still use the calculator by skipping the property section.
NOTE: The Income Tax Calculator for BTL Investors 2019-20 above is provided for research purposes only and is not meant to be relied upon for any other purpose. If you would to use our tax filing services please submit your email address along with a brief description of your requirements and we will get back to you.
How to register for self assessment?
You need to register for Self Assessment (SA) online and obtain a UTR (unique tax payer reference) number before you can submit a SA tax return.
Once registered, HMRC will send you a letter containing your UTR number within 10 working days.
HMRC requires a SA tax return from the following tax payers:
- self employed
- most company directors
- people in partnerships
- receiving: Income from property
- Tips and commissions
- Savings and investments
- Dividends
- Foreign income
How to apply for a government gateway ID?
To apply for Self Assessment online, you need a Government Gateway ID and password. However, if you do not have a government gateway ID, you can create one at the same time as you register online for SA.
Who are Non Resident Landlords (NRL)
Non-resident landlords are persons who have UK rental income, and whose ‘usual place of abode’ is outside the UK.
Landlords, for the purposes of the Non-resident Landlords (NRL) Scheme, include individuals, companies and trustees.
In the case of partnerships, each partner is treated as a separate landlord in respect of their share of the rental income.
Non resident landlords can apply to HMRC to receive UK rental income without deduction of UK tax - individuals.
What is the Non-resident Landlords Scheme?
The Non-resident Landlords (NRL) Scheme is a scheme for taxing the UK rental income of persons whose ‘usual place of abode’ is outside the UK (see paragraph 2.3 below). For convenience, these guidance notes refer to such persons as ‘non-resident landlords.
The Scheme applies to UK rental income paid to non-resident landlords from 6 April 1996. Different arrangements apply to UK rental income paid before 6 April 1996.
Letting agents of a non-resident landlord must:
- deduct tax from the landlord’s UK rental income; and
- pay the tax to HMRC’s Accounts Office, Shipley.
Where there is no letting agent, tenants who pay rent of more than £100 a week to a non-resident landlord must:
- deduct tax from the landlord’s UK rental income; and
- pay the tax to HMRC’s Accounts Office, Shipley
Tenants who pay rent of £100 a week or less do not have to operate the scheme unless they are told to do so by HMRC
Letting agents must operate the scheme regardless of the amount of the rent they collect - even if it is £100 a week or less.
For the purposes of the NRL Scheme, the year runs from 1 April to the following 31 March. Letting agents and tenants who have to operate the Scheme must account for tax each quarter - that is, for the three-month periods ending on 30 June, 30 September, 31 December and 31 March.
Letting agents and tenants do not have to deduct tax from the rental income of a non-resident landlord if HMRC has told them in writing that the landlord is approved to receive the rental income with no tax deducted.
How non resident landlords can apply to receive rent without deduction of UK tax?
HMRC provides the following an online application NRL1 Online Form to allow NRLs to apply to have rent without deduction of UK tax.