Non-resident directors
Form NRL1 lets a non-resident landlord apply to HMRC for rent to be paid without the letting agent or tenant deducting basic rate tax.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityNRL1 is the application a non-resident individual landlord submits to HMRC to be approved to receive UK rental income gross, without a letting agent or tenant withholding basic rate tax at source. Approval is HMRC's decision and is not automatic.
How the scheme normally works without approval
Applying for gross payment
NRL1 is the application a non-resident individual landlord submits to HMRC to be approved to receive UK rental income gross, without a letting agent or tenant withholding basic rate tax at source. Approval is HMRC's decision and is not automatic.
Under the Non-resident Landlord Scheme, a UK letting agent, or the tenant if there is no agent and rent exceeds £100 a week, must deduct basic rate tax from the rent (less certain deductible expenses) and pay it to HMRC quarterly, reporting annually on form NRLY.
This withholding is not the landlord's final tax bill; it is credited against the liability calculated on the landlord's own Self Assessment return, with any difference settled at that point.
NRL1 asks for the landlord's UK tax history, whether Self Assessment returns are up to date, and the property and letting agent details. HMRC will generally refuse or withdraw approval where the applicant has a poor filing or payment record.
Approval to receive rent gross improves cash flow but does not change the underlying tax due; the landlord must still file Self Assessment returns each year and pay any tax owed on the rental profit through that route instead of through withholding.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
It continues until HMRC withdraws it, which can happen if returns or payments fall behind.
Yes, non-resident corporate landlords have separate registration routes, and most non-resident companies now pay corporation tax on UK property income rather than income tax.
The agent can assist, but the application and its accuracy are the landlord's responsibility.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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