NRL Tax

Before you begin setting up and managing NRL within Street, it's highly recommended that you read our NRL Tax Overview help article which explains how NRL tax works within Street and the basic settings to setup first.

To get started setting up NRL for owner, head to either the ownership page of the property, accessed from the property page by clicking the 'owner' section:

Or head to the person page for an individual owner, most easily accessed by searching their name in the global search bar at the top of the page.

On the ownership or person page, scroll down and on the right hand side you will see a section called 'overseas'. In this section click 'add overseas period'.

You should enter the date the individual began living overseas as well as either an end date for when they moved back to the UK or leave the end date as 'ongoing' (ie the person is still living overseas).

You also have the option to mark if the owner is exempt from NRL tax. If you select yes, you will be prompted to enter the start date for this exemption as well the exemption certificate number.

Once an owner's overseas period has been added, in the ownership page the overseas details section will update with some additional information.

When an owner has an active overseas period setup, their 'overseas' card will show the status of NRL. If there is no active period, it will display 'resident landlord' instead.

Clicking the 'add opening balance' button lets you set the amount of NRL tax you are currently holding for this person that has not yet been added to Street. These figures will be used to calculate the total amount of tax that is to be held for the year and what will be submitted to HMRC each quarter, as well as ensuring the required reports/certificates are accurate i.e. NRL6 & NRLY.

You will need to enter the following data from the current tax year (01 April 2024), excluding anything already in Street:

Clicking 'view history' gives you a breakdown of the history of NRL periods for that owner, showing their historic start and end dates. You can also edit or delete historic periods from this area.

Clicking 'edit overseas period' lets you edit the current period. This is useful to update the record and add the end date for example.

Any owners with an active overseas period will show as such during the 'allocate payments' stage of accounting. The amount of money being paid will automatically deduct the 20% NRL tax and will show as deductions on their statement:

Once money has been allocated, the owner ledger will display the relevant entries as debits for the NRL tax deduction.

Once allocated, the money will move into your NRL Tax account.

If an owner's overseas period changes, you may see a tax refund appear on the allocate funds page. This happens when Street calculates that too much tax has been taken and a refund needs to be issued.

To see a breakdown of the NRL tax you are holding for each of your owners, head to Accounting (left side panel) > NRL Tax.

This table will show a list of owners, the number of their properties your agency manages and the tax payment amount.

Tax payment refers to the amount of tax owed in the selected financial quarter and is a running total that will increase with each rent payment.

To make an NRL tax payment to HMRC, head to the NRL Tax Account page, select which account the payment is coming from (bottom left of the page) and click 'pay tax'.

This will generate a single payment file in the payments to make section for every landlord and the amount of tax held, which can be uploaded to your bank to make a single payment to HMRC.

When you are finished handling NRL for a quarter and there are no further payments to make, you can close that quarter off by clicking the 'Mark as closed' button.