MTD for Non Resident Landlords: What Changes in 2026

Making Tax Digital for Income Tax (MTD for IT) went live on 6 April 2026 for sole traders and landlords with qualifying income above £50,000. Non resident landlords sit in a different position, and the detail decides what you do next.

The deferral, and why it is not an exemption

HMRC has given non resident individuals an automatic 12 month deferral. It applies if you filed residence pages (form SA109) with your 2024/25 return and expect to file them again for 2026/27. There is nothing to claim. Your start date moves to 6 April 2027, the point at which the threshold also drops to £30,000. From April 2028 it drops again to £20,000.

The deferral rests on those SA109 filings. A landlord who has not been submitting residence pages, or who returns to UK residence, can fall inside the rules from 2026. Qualifying income is measured on gross UK rents and UK self employment turnover before expenses, so a portfolio producing £52,000 of rent with a mortgage against it still crosses the £50,000 line. Income from property outside the UK stays outside MTD for IT.

Record keeping requirements

Digital records replace spreadsheets and paper folders. For each property you need the date, the amount and the category of every rent receipt and every expense, held in software that connects to HMRC. Records must be created and stored digitally, and the link from record to submission must be digital too, so retyping figures into a return no longer works.

Joint owners record their share. Landlords using an agent still record gross rent and the fees deducted, not the net amount reaching the bank. Existing rules on retaining evidence for at least five years after the January filing deadline continue to apply.

What HMRC requires

Four quarterly updates per tax year, covering the periods to 5 July, 5 October, 5 January and 5 April, filed by the seventh of the following month. Each update reports cumulative income and expenses for the year to date. After the fourth update you file a final declaration by 31 January, which brings in reliefs, adjustments and any other income and settles the tax.

Late submissions attract points, and points reaching the threshold trigger a financial penalty. The Non Resident Landlord Scheme runs alongside all of this. Agents and tenants continue to deduct basic rate tax unless HMRC has approved you to receive rent gross under form NRL1.

How AGA Accountants can help

We confirm whether your deferral holds, calculate your qualifying income from the correct gross figures, and set up Xero or QuickBooks Online around a UK property portfolio held from abroad. We handle NRL1 applications, quarterly filing, the final declaration, and the tax planning that sits behind it, including relief for finance costs and the interaction with tax in your country of residence.

Preparing during the deferral is cheaper than reacting after it ends. Contact our Cloud specialist accountant and tax advisor today.