Landlord refund of NRL tax

You can refund any Non Resident Landlord (NRL) tax held in your client bank account, providing it hasn't yet been paid to the HMRC.

This article includes: 

• Reasons for refunding NRL tax
• Processing a landlord refund of NRL tax

Reasons for refunding NRL tax

There are various scenarios that may result in a refund of NRL tax to a landlord. A few examples are:

• Tax deducted in error, i.e. the landlord is not overseas, or the overseas from date was set incorrectly
• The agent has received a backdated approval reference number for the landlord
• The landlord VAT status was incorrect in the landlords tax
• The landlord has paid an expense directly (out of pocket) and requested a refund in lieu of a tax credit

Processing a landlord refund of NRL tax

1. Click Accounts on the main toolbar
2. On the side menu, within the Bank Transactions section, click Process NRL Tax
3. Click View on the client account you will be processing the NRL tax refund
4. Click the Landlord Refunds of NRL Tax top tab
5. Find and select the contact using the Search bar
6. In the Include dropdown menu, either click All Branches or an individual branch
7. Click on the row of the landlord that you need to refund
8. The Refunds for window opens. The landlords name and address display
   1. A row displays for each tax Quarter and each Payment Group. Tick Include to refund all monies held in a tax Quarter for a Payment Group
   2. Enter an amount in the Refund amount column
   3. In the Refund Type dropdown menu, click the relevant payment method that your agency wishes to use (choose Internet if you are going to follow the further steps below)
   4. Tick Send Refund if you want to send a copy of the refund advice directly to the landlord, in the same way that their landlord statements are sent (This is based on their Account Delivery Method, in their Contact record)
   5. Click Preview to view the refund advice, and then Exit Preview to return
9. Click Update 

An entry appears in the landlords Transactions and also on their Timeline, where it can be viewed and printed.

If you wish to show this refund on the landlord statement, follow these additional steps:

1. Navigate to the landlords contact record
2. Click Actions
3. In the dropdown menu, click Receipt
4. The Receive From window opens. Enter the Receipt Date
5. In Amount Received, enter the NRL refund amount
6. Click Update
7. Remove the Held Monies text and enter a Description explaining that it's an NRL Refund
8. Slide the toggle against the option Receive into payment group, then select the correct payment group
9. Click Yes

To end the tax period for landlords who aren't overseas:

1. On the landlords contact record, click Contact on the side menu
2. Click the Tax top tab
3. Click on the existing tax period and remove the tick from Ongoing
4. Enter an End Date (we suggest the day after the Start Date)
5. Click Update

Related articles: 

Overseas tax / NRL - process tax quarterly

Printing HMRC reports