Published: 4/17/2025
Are you a landlord earning rental income from UK properties but living overseas? The Non-Resident Landlord (NRL) Scheme is essential for managing your UK tax obligations. At Countify, a Glasgow-based firm specializing in tax services, we provide expert guidance to help non-resident landlords navigate the NRL Scheme and stay compliant with HMRC. In this guide, we’ll explain the NRL Scheme, how it affects landlords, and how Countify can support you.
What is the Non-Resident Landlord Scheme?
The Non-Resident Landlord Scheme is a UK tax system for landlords who live outside the UK but earn rental income from UK properties. If you’re a non-resident landlord—spending over 183 days abroad annually or with a primary residence overseas—this scheme ensures HMRC collects income tax on your UK rental income. Whether you’re in Dubai, Sydney, or New York, Countify can help you understand and comply with NRL Scheme rules.
Who Needs to Follow the NRL Scheme?
The NRL Scheme applies to:
🔹 Individual landlords living abroad with UK rental properties.
🔹 Partnerships or trusts that are non-resident and earn UK rental income.
🔹 Temporarily non-resident landlords, such as those working overseas.
Unsure about your residency status? HMRC’s Statutory Residence Test can clarify. Countify’s tax experts in Glasgow can assess your status and guide you through the process.
How Does the NRL Scheme Work for Landlords?
The NRL Scheme taxes your UK rental income in two ways:
1. Tax Deducted at Source
By default, tax is withheld at the basic rate (20%) before rent is paid to you, unless you’re approved for gross payments:
✔️ Letting Agents: Agents deduct tax from rent and pay it to HMRC quarterly.
✔️ Tenants: If rent exceeds £100 weekly and there’s no agent, tenants may deduct tax.
✔️ No Deduction: If rent is below £100 weekly without an agent, no tax is deducted, but you must report income to HMRC.
Tax deducted counts toward your final liability. Countify can help you track deductions and claim allowable expenses to reduce your tax bill.
2. Receiving Rent Gross
You can apply to HMRC to receive rent without tax deductions by submitting an NRL1 form (individuals) or NRL2/NRL3 (companies/trusts). Approval requires a good tax record and agreement to file a Self Assessment tax return. Once approved, you receive full rent and pay tax directly to HMRC. Countify’s Glasgow team can assist with NRL form submissions and ensure compliance.
Key Responsibilities for Non-Resident Landlords
To stay compliant, you must:
1️⃣ Register with HMRC: Notify HMRC of your rental income and register for Self Assessment.
2️⃣ File Tax Returns: Report income annually, whether tax is deducted or you receive gross payments.
3️⃣ Keep Records: Track rental income, expenses (e.g., repairs, agent fees), and tax deductions.
4️⃣ Pay Tax: Settle any tax owed by HMRC deadlines.
Countify offers tailored support to streamline these tasks, saving you time and avoiding penalties.
Why Choose Countify for NRL Scheme Support?
Based in Glasgow, UK, Countify specializes in helping non-resident landlords meet their tax obligations. Our services include:
✔️ NRL Scheme registration and form submissions.
✔️ Self Assessment tax return preparation for accurate reporting.
✔️ Advice on allowable expenses to minimize your tax liability.
✔️ Double taxation agreement guidance to avoid paying tax twice.
✔️ Ongoing compliance support to prevent HMRC penalties.
With Countify, you gain peace of mind knowing your UK rental income is managed professionally.
Benefits and Tips for Non-Resident Landlords
Benefits of the NRL Scheme
✔️ Improved Cash Flow: Receiving rent gross avoids upfront tax deductions.
✔️ Fair Taxation: Tax is based on income after allowable expenses.
✔️ Clear Compliance: The scheme provides a structured way to meet tax obligations.
Tips for Landlords
🏠 Claim Allowable Expenses: Deduct costs like property maintenance and agent fees to lower your tax.
🏠 Check Double Taxation Agreements: Avoid paying tax in both the UK and your country of residence.
🏠 Stay Compliant: Late filings can lead to penalties. Countify ensures timely submissions.
How to Get Started with the NRL Scheme
To join the NRL Scheme or receive rent gross:
1️⃣ Complete the relevant NRL form (available on HMRC’s website).
2️⃣ Submit details about your residency, rental income, and tax history.
3️⃣ Await HMRC approval (typically a few weeks).
Countify’s Glasgow-based experts can handle the application process and guide you every step of the way.
Partner with Countify for NRL Success
The Non-Resident Landlord Scheme is critical for landlords abroad with UK rental income. By understanding the scheme and staying compliant, you can optimize your tax obligations and focus on your investments. Countify, based in Glasgow, UK, is your trusted partner for navigating the NRL Scheme. From registration to tax returns, our expert team ensures you meet HMRC requirements with ease.
Contact Countify today for personalized tax advice and take control of your UK rental income!
Visit Countify’s website or call our Glasgow office to schedule a consultation. Let us simplify your non-resident landlord tax obligations!
Note: Tax rules change, so consult HMRC’s latest guidance or Countify for up-to-date advice.