Quick answer: MTD for Income Tax applies based on UK income, not where you live. Non-UK residents and expats with UK self-employment or property income above the threshold are within scope on the same basis as UK residents. A specific easement exists for people who filed the SA109 residence pages on their 2024/25 return.
Living outside the UK doesn’t automatically put you outside MTD for Income Tax. If you have qualifying UK income, self-employment or property, the rules are generally applied the same way regardless of your residency status.
How MTD applies if you live abroad
The £50,000 qualifying income threshold, and the phased drops to £30,000 in April 2027 and £20,000 in April 2028, apply to gross UK self-employment and property income regardless of where you’re resident. A UK landlord living in Spain with rental income above the threshold is treated the same, for MTD purposes, as a UK-resident landlord with the same income.
The SA109 easement
Most people who filed the SA109 supplementary residence pages as part of their 2024/25 Self Assessment return are automatically exempt from MTD for Income Tax for the 2026/27 tax year. This gives many non-residents and expats an extra year to prepare before the requirement takes full effect, rather than being caught in the first mandatory wave.
What to check if this applies to you
- Confirm whether you filed an SA109 with your most recent Self Assessment return, since that’s the trigger for the exemption, not residency status alone.
- Check your UK qualifying income against the current and upcoming thresholds; see our qualifying income explainer.
- Don’t assume time zones or being abroad changes your reporting deadlines; quarterly update and final declaration dates are unaffected by where you live.
- If you use an agent or accountant in the UK to manage your affairs, confirm they’re aware of your MTD status and have access set up in your chosen software.
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