HMRC Crackdown on Non-Resident Income Reporting

“Non-resident” does not always mean “no UK tax.” Many people living overseas still have UK reporting responsibilities — especially where they receive UK-source income such as rent from UK property, or remain connected to UK business activity. HMRC has also been expanding its focus on wealthy and offshore non-compliance, alongside increased use of international information exchange and targeted interventions.

This guide explains (in general terms) what “crackdown” means in practice, the most common issues that trigger HMRC attention, and how Accusolve can help you become compliant and reduce risk — without panic.

Important: This article is general information only and is not tax, legal, or financial advice. Tax treatment depends on individual circumstances and can change. If you are unsure about your obligations, you should obtain personalised professional advice.

What does HMRC’s “crackdown” on non-resident income reporting involve?

In practice, “crackdown” usually means HMRC is:

• Receiving more third-party data through international information sharing (such as the Common Reporting Standard and FATCA).
• Using that data to identify mismatches and prompt disclosures (often via “nudge” communications).
• Encouraging voluntary disclosure through formal channels such as the Worldwide Disclosure Facility (WDF).
• Targeting rental income non-compliance through the Let Property Campaign (LPC).

Why non-residents still get caught out

Most problems are not deliberate evasion — they’re caused by misunderstandings. Common examples include:

1) “I moved abroad, so I don’t need to file anything in the UK.”

Many people assume leaving the UK ends all UK reporting. However, UK-source income (such as rent from a UK property) can remain taxable and/or reportable in the UK even when you are non-resident. In addition, some non-residents still need to submit a UK Self Assessment return depending on their circumstances. Accusolve can help you assess whether you need non-resident tax returns and ensure your filings match HMRC expectations.

2) UK rental income not declared (or declared incorrectly)

UK property is a major compliance area. Non-resident landlords often have:

• incorrect expense claims,
• missing rental periods,
• agent statements not reconciled to actual receipts, or
• no formal UK disclosure for prior years.

HMRC’s Let Property Campaign provides a structured route to disclose unpaid tax on residential rental income and bring affairs up to date. For many landlords, using the correct route early is far better than waiting for an enquiry.

3) Offshore income and assets: information sharing is wider than most people realise

Under Automatic Exchange of Information agreements, financial institutions may report certain account details to tax authorities, which can then be exchanged with HMRC. This environment makes it more important than ever that UK filings (where required) align with overseas reality.

4) Double-tax confusion and “I paid tax abroad already”

It’s common for non-residents and expats to assume that paying tax in another country automatically removes UK obligations. Sometimes relief is available under double tax agreements, but it depends on treaty wording, the type of income, and your personal position. If relevant, Accusolve can support you with the UK-side compliance and how this interacts with double taxation considerations (and coordinate with overseas advisers where needed).

5) Late corrections can mean higher cost and more stress

If something has been missed, delaying action can increase interest and penalties. HMRC provides routes for voluntary disclosure, including the Worldwide Disclosure Facility for offshore matters. The key is to use the right route, prepare accurate figures, and document the position properly.

How Accusolve can help non-residents and expats

Accusolve Accountants is AAT AML supervised and supports non-UK residents, expats, and internationally mobile clients with practical UK tax compliance and reporting. We do not provide legal or investment advice, but we can help you get clear and compliant on the UK side.

• Non-resident tax return support: We prepare and file non-resident tax returns and advise what HMRC information is typically required.
• UK property income compliance: We help landlords organise records, calculate taxable rental profits correctly, and where appropriate, support disclosure routes such as the Non-Resident Landlord context and HMRC campaigns.
• Disclosure and clean-up projects: Where issues span multiple years, we support you with documentation, calculations, and a structured approach (including WDF-style preparation where relevant).
• Residency clarity: If your status is unclear, we help you understand the UK factors and direct you to the right UK-residency resources. See: Tax Residency.
• HMRC communications support: If you receive an HMRC letter, we can help you understand what it means and respond with accurate records via our HMRC interactions & risk management support.