𝗪𝗵𝗮𝘁 𝗟𝗮𝗻𝗱𝗹𝗼𝗿𝗱𝘀 𝗡𝗲𝗲𝗱 𝘁𝗼 𝗞𝗻𝗼𝘄 𝗮𝗯𝗼𝘂𝘁 𝗠𝗮𝗸𝗶𝗻𝗴 𝗧𝗮𝘅 𝗗𝗶𝗴𝗶𝘁𝗮𝗹

HMRC has been planning to bring in new rules on how landlords file their tax returns for some time.

Here’s an update on the scheme, which is called Making Tax Digital (MTD), and a timeline for its introduction.

MTD will require landlords and the self-employed to:

• Keep digital records of all income and expenditure.
• Send HMRC quarterly updates.
• Submit an end-of-year final declaration.
• Use approved third-party reporting software.

The timeline for MTD compliance is:

• 6 April 2026, if your annual business or property income tops £50,000.
• 6 April 2027, if your annual business or property income tops £30,000.

There will be a points-based penalty system – and ultimately fines – for people who fail to comply.

𝗜𝗺𝗽𝗮𝗰𝘁
Well-organised landlords who maintain digital records may only have to make minor adjustments.

However, old-school landlords who rely heavily on paper documentation are in for a big change.

Whichever category you fall into, start preparing for MTD now, as it takes time to implement new systems.

𝗙𝗼𝗿 𝗺𝗼𝗿𝗲 𝗮𝗱𝘃𝗶𝗰𝗲 𝗼𝗻 𝗽𝗿𝗲𝗽𝗮𝗿𝗶𝗻𝗴 𝗳𝗼𝗿 𝗠𝗧𝗗, 𝗰𝗼𝗻𝘁𝗮𝗰𝘁 𝘂𝘀 𝘁𝗼𝗱𝗮𝘆.