Non resident UK - Tax return

Given that answer I think it may be correct for you to ask them something like this:

'In view of of Revenue and Customs Brief 2 (2016): deduction of Income Tax at source from payments of peer-to-peer interest (https://www.gov.uk/government/publications/revenue-and-customs-brief-2-2016-deduction-of-income-tax-at-source-from-payments-of-peer-to-peer-interest/revenue-and-customs-brief-2-2016-deduction-of-income-tax-at-source-from-payments-of-peer-to-peer-interest):

"The costs to the platforms of developing the necessary systems to apply the current rules in the meantime would be disproportionate to the relatively small amount of tax which would be collected. Consequently, in the period before the government makes any necessary changes to the legislation, interest payments made on P2P loans may be made without deduction of tax.

This will apply to interest payments made by:

a UK borrower to a UK P2P platform
a UK P2P platform whoever made to
any intermediary to or from a UK P2P platform
In each case the P2P platform must be authorised by the Financial Conduct Authority (including interim authorisation)."

Specifically, while the law is that in some situations interest must be deducted, HMRC has accepted an interim position that it is not necessary for platforms to deduct the interest in at least some cases. As described in paragraph 10 of HMRC's consultation paper Deduction of income tax from interest: peer-to-peer lending (https://www.gov.uk/government/consultations/deduction-of-income-tax-from-interest-peer-to-peer-lending):

"10. Under the existing rules, which apply generally to interest other than that paid by
banks or building societies on deposits:
o Where the borrower is a company who pays interest due to an individual, the
borrower (or an intermediary such as the P2P platform) is required to deduct
income tax at source from the interest for payment to HMRC, and pay the interest
to the lender net of tax.
o Where the borrower is a company who pays interest due to another UK company,
neither the borrower nor the P2P platform is required to deduct tax at source, and
interest may be paid gross.
o Where the borrower is an individual (including a sole trader) who pays interest to
either an individual or a company resident in the UK, neither the borrower nor the
P2P platform is required to tax deduct at source and interest may be paid gross.
o However where the interest is due to a lender who is resident outside the UK, the
borrower (or the P2P platform) is required to deduct income tax at source from the
interest for payment to HMRC, and to pay the interest to the lender net of tax,
regardless of the identity of the borrower."

Is it HMRC's position that the interim position in the briefing note 2 does not apply to a lender who is resident outside the UK? If so, would you be kind enough to both confirm that and submit a revision to the briefing note so that it mentions the non-resident case?'

Or to tell you this in another way: it's HMRC that seems to be making conflicting statements, so get HMRC to make them non-conflicting somehow.