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The ‘Non-Resident Landlord Scheme’ (NRLS) is a scheme for taxing the UK rental income of non-resident landlords. Usually basic rate tax is deducted from the net rent collected by an agent (less expenses paid) or paid by a tenant unless the agent/tenant has authority from HMRC to pay the landlord gross.

‘Non-resident landlords’ under this scheme are persons (individuals, companies, trustees) who are in receipt of UK rental income, and whose ‘usual place of abode’ is outside of the UK.
 
Although the scheme refers to 'non-resident' landlords, it is the ‘usual place of abode’ and not residency that determines whether a landlord is within the scheme or not.

An absence from the UK of six months or more determines that a person has a ‘usual place of abode’ outside of the UK. It is therefore possible for a person to be tax resident in the UK yet, for the purposes of the scheme, to have a ‘usual place of abode’ outside of the UK.

Rent can be paid gross on application using Form NRL1. HMRC will formally approve the application where satisfied that the applicant’s UK tax affairs are up-to-date or that the rental income will be non-taxable (e.g. where covered by personal allowances).

On receipt of the ‘Notice of Approval’ tax will not be withheld and a tenant will not be required to make any returns post the date of approval. An agent will have to submit an annual return but will not be required to submit the usual quarterly returns.