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Under the Non-resident Landlord (NRL) scheme, HM Revenue & Customs requires letting agents to deduct basic-rate tax from the rental income of landlords who live outside the UK, and to report and pay it each quarter. Yorlet deducts the tax automatically when you pay out a non-resident landlord, tracks what you have collected, and prepares the forms you need to file.

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How the deduction works

Yorlet works out whether a landlord is liable from the Tax residency on their owner account: Only landlord accounts are assessed. Leaseholders and suppliers are never taxed. When you approve a payout for a taxable landlord, Yorlet:
  1. Calculates the taxable amount: the income in the payout less the fees and expenses deducted from it.
  2. Creates a Non-resident tax collection for 20% of that amount, described to the owner as Non-resident tax (20%).
  3. Deducts it from the payout, so the Net amount the landlord receives is the payout amount less the tax.
The approval dialog shows the Taxable amount and the Non resident tax deduction before you confirm. The tax is credited to the owner account you choose in your routing settings, so you can hold it until you pay HMRC.
Set a landlord’s Tax residency as soon as you know it, and update it if they move. It is set when you create the owner and can be changed from Edit information. If a landlord holds an HMRC approval to receive rent without deduction, record their certificate through the Yorlet API to mark them exempt.

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Set up tax reporting

Before you can file, add your scheme details:
  1. Go to your tax reporting settings.
  2. Enter your Reference number. This is the reference HMRC issued to you for the NRL scheme.
  3. Enter your Signature, the name used to sign your filings.
  4. Click Save.

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Route the tax you collect

By default, non-resident tax collections are credited to your platform account alongside your fees. To keep them separate, create a dedicated owner account and select it under Non resident tax collections in your routing settings. Paying that account out to your bank then gives you exactly the amount owed to HMRC.

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Tax forms

Yorlet generates a tax form for each return you need to make. You can view and manage them on the Tax forms page, or on the Tax forms section of a landlord’s record. Tax forms are organised into tabs by status:
  • Needs attention: something is missing before the form can be filed, for example your scheme reference.
  • Ready: the form is complete and ready to file.
  • Filed: the form has been filed.

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View and download a tax form

Open a tax form from the Tax forms page to see its type, period, the landlord it relates to, and the amounts Collected and Refunded in the period. Click Download report to download it as a PDF.

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Delete a tax form

You can only delete a tax form that has not been filed.
To delete a tax form, open it, use the and select Delete.

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Tax filings

A tax filing records that you have submitted your NRL6 certificates to landlords. Filing sends each landlord their certificate by email, with a link to the PDF, and marks the forms as Filed. To create a filing, follow these steps:
  1. Go to the Tax filings page and click New filing, or press N.
  2. Choose the Type and add an optional Description.
  3. Click Create filing.
Filings are listed under Pending while Yorlet processes the forms, then Complete once every certificate has been sent.