HMRC Form NRL1 is the application an individual non-resident landlord submits so that UK rental income can be paid without the 20% basic-rate tax that letting agents and tenants would otherwise withhold under the Non-Resident Landlords Scheme. Approval does not remove your UK tax liability. It moves the reporting onto you, through Self Assessment, instead of at source.
Who Can Apply on Form NRL1
The scheme uses a “usual place of abode” test rather than the Statutory Residence Test used elsewhere in UK tax law. You qualify as a non-resident landlord if you usually live outside the UK; someone abroad only temporarily, roughly six months or less, does not count and falls outside the scheme.1GOV.UK. The Non-Resident Landlords Scheme – Usual Place of Abode
Being non-resident is not enough on its own. HMRC will approve NRL1 only if your UK tax affairs are up to date, you have never had UK tax obligations, or you do not expect to owe UK tax for the year you apply.2GOV.UK. What the Non-Resident Landlords Scheme Is Outstanding returns or unpaid tax will get the form rejected. Clear those first.
If the property is jointly owned, each non-resident co-owner is a separate landlord and needs to submit their own NRL1 for their share of the rent. HMRC only authorises gross payment to the individual named on the approval, so an agent cannot pay one owner gross and withhold from the other simply because they share the property.2GOV.UK. What the Non-Resident Landlords Scheme Is
One boundary worth flagging: NRL1 is for individuals only. Non-resident companies apply on Form NRL2 and non-resident trusts on Form NRL3. Both are postal only, and either must attach a 64-8 Agent Authorisation if an agent is going to act for them.3GOV.UK. Non-Resident Landlords: Company or Trustee Application to Have UK Rental Income Without Deduction of UK Tax
What to Have Ready Before You Start
Have the following in front of you before opening the form. Getting the agent or tenant section wrong is the most common cause of delay, because HMRC cannot issue a notice to stop withholding if it does not know exactly who to write to.
- Your full name, National Insurance number if you have one, and your Unique Taxpayer Reference. The UTR is a 10-digit number shown on previous Self Assessment correspondence.4GOV.UK. Find Your UTR Number
- Your current residential address overseas and a telephone number where HMRC can reach you.
- The date your usual place of abode moved outside the UK.
- Your country of tax residence and the foreign tax identification number issued there.
- The full address of each UK rental property covered by the application.
- Name and address of your letting agent, or the tenant if rent is paid directly, so HMRC can notify them once approval is granted.
- Passport or other identity details, used for verification if HMRC does not already hold an NI number or UTR for you.
How to Submit the Form
The quicker route is the online application on GOV.UK. You need a Government Gateway sign-in, which you can create during the process if you do not already have one. The digital form guides you section by section and gives an electronic confirmation on submission.5GOV.UK. Apply as an Individual to Receive UK Rental Income Without UK Tax Deducted
To submit by post, download and print the NRL1 from the same GOV.UK page, complete it, and send it to:
Charities, Savings and International 1
HM Revenue and Customs
BX9 1AU
United Kingdom6GOV.UK. Non-UK Resident Landlords: Enquiries
BX9 1AU handles non-resident landlord matters. The general Self Assessment address, BX9 1AS, is a different team, and mail sent there can add weeks. If you are posting from overseas, use a tracked service.
What Happens After You Apply
HMRC issues two separate notices once the application is processed. You (or your authorised tax agent) receive a notice of approval showing an approval reference number. A separate notice goes directly to any letting agent or tenant named on the form, telling them they can stop withholding tax.5GOV.UK. Apply as an Individual to Receive UK Rental Income Without UK Tax Deducted
The effective date on the approval is usually the first day of the quarter in which HMRC received your application. The scheme runs on calendar quarters ending 30 June, 30 September, 31 December, and 31 March.2GOV.UK. What the Non-Resident Landlords Scheme Is An application arriving in February typically produces an approval dated 1 January of that year, and gross payment runs from then.
Approval also registers you for Self Assessment automatically. There is no separate registration step.2GOV.UK. What the Non-Resident Landlords Scheme Is
If you later change agents or move to a new tenant, that new payer will not hold an HMRC authorisation and must withhold until you update your details and HMRC writes to them.2GOV.UK. What the Non-Resident Landlords Scheme Is Tell HMRC promptly about any change to your overseas address, or if you move back to the UK, because returning means you no longer qualify as a non-resident landlord.
Reclaiming Tax Withheld Before Approval
Any tax your agent or tenant withheld before the approval date can be recovered, but how depends on the size of the rental income. If your UK rental income is more than £2,500, you reclaim through your Self Assessment return rather than a separate form. If your rental income is £2,500 or less and you are not otherwise required to file Self Assessment, you can use Form R43 to claim personal allowances and a refund. R43 is available online through GOV.UK or as a downloadable PDF for postal submission.7GOV.UK. Claim Personal Allowances and Tax Refunds if You Live Abroad
Keeping Approval: Self Assessment and What Can Revoke It
NRL1 approval shifts the responsibility for paying tax, it does not remove it. You must file a Self Assessment return each year. The online deadline is 31 January following the end of the tax year.8GOV.UK. Self Assessment Tax Returns: Deadlines On the return you report gross UK rental income, deduct allowable expenses, and pay any tax due.
Missing the deadline generates escalating penalties:
- Day 1: an initial £100 fixed penalty.
- After 3 months: daily penalties of £10 per day, up to a maximum of £900.
- After 6 months: the greater of 5% of the tax due or £300.
- After 12 months: another 5% of the tax due or £300, whichever is greater.9GOV.UK. Self Assessment Tax Returns: Penalties
A full year of non-filing can produce well over £1,600 in penalties before any tax is added. It also puts your gross payment status at risk. HMRC can withdraw NRL1 approval if:
- Information given on the application turns out to be incorrect.
- HMRC is no longer satisfied you will meet your UK tax obligations.
- You fail to provide information HMRC requests.2GOV.UK. What the Non-Resident Landlords Scheme Is
Where approval is withdrawn, HMRC sends you a notice with the reason and an effective date, and tells your agent or tenant to start withholding 20% again from that date. The commonest trigger is a backlog of Self Assessment returns. File on time and this rarely arises.