HMRC have acknowledged that Notices to File Self Assessment returns for 2020-21 have incorrectly been issued to some Non-Resident Corporate Landlords (NRCL). The issue came to light after a number of advisers complained to the Chartered Institute of Taxation (CIOT).

Up until 5 April 2020, assessment for UK tax on property income received by Non-Resident Landlords was through Self Assessment. This was for both individuals and corporate entities and a SA700 return was required to be completed. 

The rules changed as of 6 April 2020, at which point property income for NRCLs was brought within UK Corporation Tax. Tax year 2020-21 was the first year for which NRCLs had to File a Corporation Tax Return (CT600) instead of a SA700.

A number of CIOT members contacted the Institute when NRCL clients starting receiving Notices to File a Self Assessment return. HMRC have asked anyone who believes that an incorrect notice has been issued to either:

  • Call the HMRC Helpline.
  • Write to the address on the Notice to File.

Each case will then be reviewed and the appropriate action will be taken if the Notice was incorrectly issued.

Useful guides on this topic

Non-resident landlord scheme
Who does the non-resident landlord scheme apply to? What taxes are paid on the income and who collect the tax?

Companies: Filing & payment deadlines
If you run a UK business via a UK-registered company you will have the following ongoing filing & payment deadlines.

Notice to file a tax return
This guide examines the implications of a notice sent to an individual under s.8(1) TMA 1970 to file a tax return.

Penalties: Late filing
Late returns can be subject to a mix of fixed and tax geared penalties. What penalties apply for late filing? Which penalty will apply and when? 

External links

Contact HMRC

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