Non Resident Landlord - 20% Tax Deduction (renting for the last 6 years)

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maxdub

Registered User
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Hi Everyone,

I have this query about deducting 20% tax from the rent payable to the landlord who is living in the UK. Neither the landlord nor us knew about this up until recently. The landlord is willing to resolve the situation as much as we do as we are renting this property for the last 6 years and we get along very well.

My question is that if we start deducting 20% from now on and forward this to the Revenue (the landlord is ok with this) so what's going to happen with all the previous six years. I would like to do a 'fresh' start and not notify revenue about failing to deduct tax for the last 6 years but the thing is that we were claiming rent tax credit all that time.

Any advice what to do in this situation?

Thanks so much in advance
 
Just to note it is a legal requirement as per Section 1041 Tax Consolidation Act 1997. I would expect that if the landlord has previously declared the income to Revenue then there is no loss of taxes to Revenue for the past 6 years. If this is the case I would write a letter to Revenue outlining the circumstances, explaining no loss of Taxes to Revenue and stating that deduction of taxes will be made in future. One extreme alternative is to withhold rent from the landlord for the next number of months to pay Revenue to outstanding wothholding taxes.
 
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