This guide covers the initial configuration required to manage Non-Resident Landlord (NRL) tax within Re-Leased's Client Account. This is a UK-only feature for withholding tax on non-resident landlords and remitting it to HMRC.
Step 1: Enable NRL Tax in Client Account Settings
Go to Client Account Settings.
Enable Withhold tax for non-resident owners. Income and expense Chart of Accounts will default to withholding tax.
Set your financial year end to March.
Step 2: Set Up Non-Taxable Chart of Accounts
For income or expenses that should not have tax withheld (e.g. Service Charge Income), create a new Chart of Account and set the Non-Resident Income Taxable/Deductible slider to NO. This must be set at creation — it cannot be changed after the account is saved.
Step 3: Set Up HMRC as a Contact and Disbursement Profile
Create an account for HMRC payments and set the Non-Resident Income Taxable/Deductible slider to NO.
Add HMRC as a new contact with Contact Category set to Company.
Create a Disbursement Profile with the Non-Resident Withholding Tax Disbursement option to manage tax payments to HMRC.
Step 4: Flag a Landlord as Non-Resident
Open the landlord's record and select Non-Resident Tax from the menu.
Click Flag as Non Resident and fill in:
Start date (when they became non-resident).
End date (leave blank if still non-resident, or enter if they've returned to UK residency).
Deselect VAT registered if not applicable.
If there is an exemption, tick the checkbox and enter the Exemption Approval Date and Approval Reference Number.
If tax has already been withheld outside the system, select Set Opening Balance and enter the net income and tax retained.
Once configured, Re-Leased automatically handles tax withholding. When it's time to remit retained tax to HMRC, process the payment using the established Disbursement Profile.