UK’s Digital Tax Regime Catches Non-Residents, Groups Warn HMRC

An initiative requiring UK businesses to submit quarterly information to the tax authority would inadvertently bring non-residents within its scope, two professional bodies warned.

The draft Making Tax Digital regime would require non-resident self-employed businesses and landlords to comply with digital reporting requirements, even if their overseas income doesn’t create any UK tax liability, according to the Chartered Institute of Taxation and the Institute of Chartered Accountants in England and Wales.

Under the MTD regime, starting in April 2026, taxpayers would be required to keep digital records and use commercial software to submit various filings to His Majesty’s Revenue ...