Making Tax Digital (MTD) for landlords – What overseas investors need to prepare for in 2026

If you own UK rental property but live overseas, the way you report rental income to HMRC is changing. Making Tax Digital for Income Tax started on 6 April 2026 for landlords and sole traders – with qualifying income above £50,000. The rules are set to extend to lower income levels in the following years.

What is Making Tax Digital (MTD) for landlords?

Making Tax Digital (MTD) is HMRC’s move towards digital tax reporting. For landlords who fall within the rules, it means keeping property income and expenses digitally. This is usually done through compatible software and sending updates to HMRC every three months.

In addition to sending quarterly updates, landlords must complete and submit their annual tax return through MTD-compatible software, by 31 January after the tax year ends. The quarterly updates are summaries, not tax returns. MTD does not mean you have to pay tax every three months. The idea is to move tax reporting closer to real time.

Traditional Self Assessment vs MTD

When does MTD apply to overseas and Singapore investors?

The starting point is your qualifying income. It is not simply the amount of profit you make. HMRC defines qualifying income as your total gross income from self-employment and property before all expenses. If you personally own multiple UK rental properties, income from those properties is generally combined when assessing whether you exceed the relevant MTD threshold.

The current MTD timetable is:

Important for overseas landlords: Meeting the qualifying-income threshold does not automatically mean you must use MTD from April 2026. If your 2024/25 tax return included the SA109 residence supplementary page, you are automatically exempt for 2026/27. This exemption is temporary, and MTD may apply from April 2027 if your 2025/26 qualifying income exceeds £30,000. Individuals without a National Insurance number before the start of the relevant tax year are also automatically exempt. Other exemptions may require an application to HMRC.

If you did not include SA109 in 2024/25 but reasonably expect to include it in your 2025/26 or 2026/27 return, you can apply for an exemption. Some overseas landlords are also automatically exempt if they do not have a UK National Insurance number, so check your circumstances before signing up for MTD.

What about UK companies and SPVs?

MTD for Income Tax does not apply to limited companies. It is applicable to individuals and certain unincorporated businesses. Partnerships are not currently required to use MTD for Income Tax either and HMRC has said a timetable will be announced later.

If your UK property is owned through a UK limited company or SPV, the company does not enter MTD for Income Tax. This is the case even though it receives rental income. Limited companies continue to deal with their tax obligations under the Corporation Tax system.

How MTD works alongside the Non-Resident Landlord Scheme (NRLS)

MTD and the Non-Resident Landlord Scheme (NRLS) deal with two different things.

NRLS is about withholding. It is tax deducted from rental income.

• As an overseas landlord, your letting agent will typically deduct tax from your UK rental income. They will pay it to HMRC (unless HMRC has approved you to receive your rent without tax being deducted).

MTD is about reporting. It is about how you keep records and report your income to HMRC.

• If you are required to use MTD, you or an agent acting on your behalf must maintain digital records of your rental income and expenses and send quarterly updates through compatible software.

or example, a Singapore-based landlord may have tax deducted by their letting agent under NRLS while also being required to maintain digital records and submit quarterly updates under MTD, if they meet the eligibility criteria and no exemption applies

How Singapore investors can prepare for MTD

Calculate your total gross rental income

Start with the rental income from all your UK properties.

If you own properties jointly, you generally need to look at your own share of the property income when calculating your position. HMRC also has certain digital record-keeping rules for jointly owned properties.

Do not calculate the threshold based on the amount left after your mortgage, management fees or other expenses. MTD qualifying income is based on gross income before expenses.

Make sure your records are MTD-compatible

If your UK property data is currently recorded in spreadsheets, now is a good time to organise everything. You may not need to stop using them. Your records will need to form part of a compliant digital system and MTD-compatible or bridging software can connect existing spreadsheet records to HMRC. MTD requires digital records of income and expenses.

You can manage your MTD-compatible software yourself or appoint an authorised tax agent to manage the reporting process on your behalf.

Keep your letting agent and tax reporting aligned

Ensure your rental statements match the figures you used for tax reporting. This is important when you own many properties.

Rental payments, management fees, repairs, other property expenses should be recorded accurately and allocated to the appropriate property. At Benham & Reeves, our Singapore office provides local support for landlords, working closely with our London property management team on rent collection, financial administration and rental statements to help keep their property records organised.

Our agents also help with UK landlord tax filing.

FAQs

Does Making Tax Digital apply to non-resident landlords?

It can – but not every non-resident landlord will necessarily have to use MTD. The rules depend on your qualifying income and circumstances.

There are also exemptions in place. A non-resident landlord who included the SA109 residence page in their 2024/25 tax return is automatically exempt for 2026/27 and so is anyone without a National Insurance number. The SA109 exemption is temporary.

If you are a Singapore investor with personally owned UK rental property, do check your individual position.

What is the MTD threshold for landlords in 2026?

For MTD starting on 6 April 2026 – the threshold is more than £50,000 of qualifying income (based on the 2024/25 tax year). The threshold then falls to more than £30,000 from 6 April 2027 and more than £20,000 from 6 April 2028.

Do overseas investors have to use MTD for UK rental income?

Not necessarily.

An overseas investor who owns UK property personally may need to use MTD if their qualifying income is above the relevant threshold, unless an exemption applies. However, certain non-resident individuals may qualify for an exemption (this depends on their tax returns).

Property owned through a limited company is not covered by MTD for Income Tax.

Does MTD replace Self Assessment for landlords?

MTD changes how your income and expenses are recorded and reported. It does not simply remove the need for a tax return. If you are required to use MTD, you must still submit an annual tax return through MTD-compatible software.

How does MTD affect landlords with multiple UK properties?

If you own several UK properties personally, your property income usually is combined when calculating your qualifying income. Ensure you maintain accurate records across your properties. Also make sure rental income and expenses are correctly recorded.

Get help with your UK landlord tax filing

If you are managing a UK property from overseas, keeping up with UK tax rules can be difficult. Benham and Reeves Singapore offers tax filing services to Singapore landlords with London properties. With 21 London branches, we also offer assistance with managing the UK properties and tax obligations.

Speak to our team about how we can support you.