Agent Responsibilities

Under UK Tax Law an agent or tenant is obliged to withhold and pay Income Tax on rental income quarterly to the Inland Revenue unless you have been approved to receive the net income gross.

If for any reason approval should not be granted, this is a matter for the landord, through their professional advisor, to persue with the Inland Revenue. The agent or tenant must comply with the Revenue’s requirement to continue withholding until otherwise instructed  and therefore the agent/tenant will not be in a position to discuss the matter.

The concession to receive income without tax withholding is not an absolute right. The Revenue may have reasons for witholding approval. The Inland revenue will only give their consent for gross payment provided that the individual has a good tax record, has no previous tax exposure and if they are satisfied that tax evasion is not being contemplated.

In the majority of cases, the landlord will benefit by making the application to receive the rental income without tax withholding in order that cash flow is maximised.

Hakim Fry International is able to overcome these problems and even in cases where outstanding Returns are to be filed, the Gross Approval can be secured.