Tax Compliance & Reporting

UK Tax Compliance

While most taxpayers in the UK are fully taxed at source (via PAYE) and are not strictly required to file a tax return to claim ‘split year treatment’ if leaving the UK part-way through a tax year, in some cases it can be advantageous to voluntarily submit a tax return where the (non) residence circumstances may not be clear-cut.

Filing a return allows the taxpayer to present their precise situation to HMRC and provide a degree of certainty that a non-resident claim will not be challenged by HMRC after the amendment window (12 months after filing in most cases) has closed.

Making Tax Digital for Income Tax

Making Tax Digital for Income Tax began on 6 April 2026 for sole traders and landlords whose qualifying income, meaning gross self-employment and property income before expenses, exceeded £50,000 in 2024/25. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. Those within scope must keep digital records and file quarterly updates through compatible software, with a final declaration replacing the single annual return.

For internationally mobile clients there is an important and widely overlooked point. Anyone whose 2024/25 return included the SA109 residence pages is exempt for 2026/27, but only for that year. What matters is that the pages were filed at all, not the reason for filing them: non-residence, dual residence, split year treatment, a remittance basis claim or a claim to personal allowances under a treaty will each do. Where the SA109 was not filed for 2024/25 but is expected for 2025/26 or 2026/27, the exemption must be applied for rather than given automatically. That is the position for anyone claiming the Foreign Income and Gains regime or electing into the Temporary Repatriation Facility, neither of which existed before April 2025.

Non-resident landlords should not assume they fall outside the regime. UK property income counts towards qualifying income even where the owner lives abroad. We establish whether Making Tax Digital applies and from when, secure exemptions where they are available, and handle quarterly reporting and the final declaration alongside the rest of your UK compliance.

Capital Gains Tax Reporting

Since April 2020, the sale of UK residential property can trigger a standalone HMRC reporting requirement, with the return and any capital gains tax payment due within 60 days of completion (30 days for completions before 27 October 2021).

This obligation applies even if the seller is within the Self Assessment system and would be required to report the same gain on their annual UK tax return.

While the sale of the ‘only or main residence’ will, in most cases, qualify for full tax relief (and be exempt from the reporting requirement if UK resident), there are a number of circumstances in which this relief is restricted, particularly where the owners have spent time abroad.

Moreover, since April 2020 HMRC has restricted lettings relief, which now applies only where the owner was in shared occupancy with the tenant.

Non UK-residents have been required to report UK property sales since April 2015, and are likely to have a UK capital gain to report in respect of their former UK home.

We offer an efficient and affordable service to calculate and report any capital gains on UK property sales.