{"id":21793,"date":"2026-10-26T11:24:02","date_gmt":"2026-10-26T11:24:02","guid":{"rendered":"https:\/\/www.benhams.com.sg\/news\/?p=21793"},"modified":"2026-10-26T11:24:02","modified_gmt":"2026-10-26T11:24:02","slug":"making-tax-digital-for-landlords","status":"publish","type":"post","link":"https:\/\/www.benhams.com.sg\/news\/property-advice\/making-tax-digital-for-landlords\/","title":{"rendered":"Making Tax Digital (MTD) for landlords – What overseas investors need to prepare for in 2026"},"content":{"rendered":"

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 \u00a350,000. The rules are set to extend to lower income levels in the following years.<\/p>\n

What is Making Tax Digital (MTD) for landlords?<\/h2>\n

\"Making<\/p>\n

Making Tax Digital (MTD) is HMRC\u2019s 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.<\/p>\n

In addition to sending quarterly updates<\/a>, 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.<\/p>\n

Traditional Self Assessment vs MTD<\/h3>\n
\n\n\n\n\n\n\n\n\n\n
Traditional Self Assessment<\/th>\nMTD approach<\/th>\n<\/tr>\n<\/thead>\n
Records can be kept manually<\/td>\nRecords must be kept digitally<\/td>\n<\/tr>\n
Information is mainly reported annually<\/td>\nUpdates are sent to HMRC quarterly<\/td>\n<\/tr>\n
Spreadsheets and paper records can be used<\/td>\nMTD-compatible software is required<\/td>\n<\/tr>\n
Less frequent reporting<\/td>\nIncome and expenses need to be kept up to date throughout the year<\/td>\n<\/tr>\n
Final Self Assessment tax return<\/td>\nFinal tax return is still required<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

When does MTD apply to overseas and Singapore investors?<\/h2>\n

The starting point is your qualifying income. It is not simply the amount of profit you make. HMRC defines qualifying income<\/a> 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.<\/p>\n

The current MTD timetable is:<\/p>\n

\n\n\n\n\n\n\n\n
Assessment tax year<\/th>\nQualifying income<\/th>\nMTD start date<\/th>\n<\/tr>\n<\/thead>\n
2024\/25<\/td>\nMore than \u00a350,000<\/td>\n6 April 2026<\/td>\n<\/tr>\n
2025\/26<\/td>\nMore than \u00a330,000<\/td>\n6 April 2027<\/td>\n<\/tr>\n
2026\/27<\/td>\nMore than \u00a320,000<\/td>\n6 April 2028<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Important for overseas landlords:<\/strong> 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 \u00a330,000. 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. <\/p>\n

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<\/a>. 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.<\/p>\n

What about UK companies and SPVs?<\/h2>\n

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.<\/p>\n

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.<\/p>\n

How MTD works alongside the Non-Resident Landlord Scheme (NRLS)<\/h2>\n

MTD and the Non-Resident Landlord Scheme (NRLS) deal with two different things.<\/p>\n

NRLS<\/strong> is about withholding. It is tax deducted from rental income.<\/p>\n