When this overseas landlord approached SJW, he already owned two rental properties in London. One, located in central London, was let and managed by SJW Property Management; the other had always been managed by another property management company. From the landlord’s perspective, both properties had been rented out normally and generated rental income every month. He therefore believed that there were no problems with the way his properties were being managed and had never suspected that there might be any tax-related risks.
However, after SJW’s finance team began handling the property management, Maggy, who was responsible for the landlord’s financial matters, quickly noticed something unusual while reviewing the rental records, letting statements and tax documents. After further checks, she discovered that the landlord had not completed the required tax filings under the UK Non-Resident Landlord scheme. When Maggy asked the landlord about the situation, he was extremely surprised. He had always assumed that, as long as a property management company was managing the letting, the related tax matters had also been taken care of. It was only then that he told the SJW team that he actually owned another rental property — and that the tax filings for that property had likewise not been completed over the years.
For many overseas landlords, this situation is not uncommon. The property continues to be rented out, rent continues to be collected, and the property management company sends monthly rental statements. It is therefore easy for a landlord to assume that everything has been handled compliantly. However, the UK tax authorities do not stop operating simply because a landlord is unaware of an obligation. Under UK tax rules, overseas landlords need to complete the relevant tax registration and declare their rental income as required by law. If the correct filings are not made for a prolonged period, HMRC may continue recording the outstanding matters and may even begin accumulating penalties — while the landlord remains completely unaware.
Once the issue was identified, SJW’s finance team immediately began a comprehensive review of the landlord’s tax position. Maggy first assisted the landlord with reapplying for and organising the relevant Non-Resident Landlord documentation, while checking, item by item, the rental income, tax records and payment history from previous years.
During the application process, however, she discovered another, more complicated issue. Years earlier, the other property management company had in fact applied for a Non-Resident Landlord Number on the landlord’s behalf. But after the application had been completed, no subsequent tax filings had been made. Because the relevant tax obligations had remained outstanding for a long period, HMRC had already begun accumulating penalties on that tax account — without the landlord knowing anything about it.
Truly professional property management does not mean standing aside simply because another property is not managed by SJW. Although the second property had always been handled by another property management company, SJW believed that once the problem had been identified, the right approach was to help the client clarify the entire tax position rather than only address the part relating to the property under SJW’s management. Maggy therefore proactively reorganised the rental income, tax records and historical documentation for both properties, with the aim of helping the landlord resolve the issues that had accumulated over many years in one comprehensive process and eliminate any remaining hidden risks.
SJW then continued communicating with HMRC on the landlord’s behalf, explaining the historical tax position and reorganising all rental income, taxes already paid and tax records from previous years. After several rounds of checks, HMRC ultimately agreed to retain one of the Non-Resident Landlord numbers, cancel the other, and consolidate the tax records that had previously been split across two accounts into one complete and unified set of records.
At the same time, the penalties that had already begun to accumulate were cancelled, and the landlord’s tax affairs were restored to a clear, orderly and compliant position.
Even more unexpectedly, once all the accounts had been fully reconciled, HMRC found that the landlord had actually overpaid tax in some previous years. Following the final calculation, instead of suffering an additional financial loss because his tax affairs had remained unresolved for years, the landlord received a tax refund of more than £4,000 from HMRC. What had been a confusing set of accounts left unresolved for years was finally put in order. From that point onward, the landlord’s rental income, tax filings and Non-Resident Landlord status were all brought into a transparent, compliant and properly managed system. Whether he continued to hold the properties, sold them, or made new asset allocations in the future, there would no longer be unresolved historical tax issues creating hidden risks.
The landlord later told the SJW team that he had always thought property management simply meant managing the letting of a property. He had never imagined that a truly professional property management company would proactively identify problems that the landlord himself did not even know existed. Nor had he expected SJW to voluntarily help him organise the affairs of another property that was not even managed by SJW.
It was through this experience that he truly understood, for the first time, the difference between professional property management and ordinary property management.
For SJW Property Management, this reflects a principle we have always upheld. Property management is never simply about managing one property; it is about helping overseas landlords manage their UK assets for the long term. Beyond finding tenants, arranging maintenance and conducting regular inspections, what matters even more is helping clients manage taxation, compliance, risk and their peace of mind for many years to come.