Digital Taxation limits?

Digital Taxation limits?

9:00 AM, 31st January 2018, About 5 years ago 7

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I am aware that, Digital Taxation is applicable to those Landlords whose turnover (Gross Rent) is in excess of £85000. So am I right in assuming that if you and your wife has rental income in excess of £170000 then Digital Taxation requirement will apply or is it £85000 in total?

Secondly there is some ambiguity in relation to the date, I have read conflating articles as to when this requirement is about to apply. As I understand that unincorporated landlords whose turnover is in excess of £85000 (each) will be required to do Digital Tax reporting from April 2018? if so, when would be first reporting, July 2018?

Any input will be greatly appreciated.



Neil Patterson

9:10 AM, 31st January 2018, About 5 years ago

From HMRC >>

"The original Making Tax Digital proposals phased in the implementation of digital record keeping and quarterly updating by businesses, the self-employed and landlords for Income Tax Self-Assessment (ITSA), Value Added Tax (VAT) and Corporation Tax (CT) between tax years 2018/19 and 2020/21.

Following representations about the scope and pace of the reforms, the government announced by Written Ministerial Statement, on 13 July 2017, that businesses would not be mandated to use the Making Tax Digital system until April 2019 and then only to meet their VAT obligations. This will apply to businesses with turnover above the VAT threshold (currently £85,000). Businesses with turnover below the VAT threshold will not be required to use the system but can choose to do so. Businesses will also be able opt in for other taxes, benefitting from a streamlined, digital experience.

The government will not widen the scope of Making Tax Digital beyond VAT before the system has been shown to work, and not before April 2020 at the earliest. This will ensure that there is time to test the system fully and for digital record keeping to become more widespread. The changes mean that the smallest businesses and landlords will be able to move to keeping digital records for tax at a pace that is right for them."

Also see articles:

Weakened government u-turns on digital tax return plans...>>

Quarterly Digital Tax returns dropped from Finance Bill... >>

Mick Roberts

14:45 PM, 31st January 2018, About 5 years ago

Eh & Neil, I'm equipped now, had good computer guy come in, all my finances/books on Excel, so I can quickly email, but every quarter, how we gonna' get the mortgage interest statements to HMRC?
That the Lender only gives us once a year? And a battle to get that.

Simon Hall

17:06 PM, 31st January 2018, About 5 years ago

Thanks Neil. If I understood it correctly if your turnover exceeds £85K as an unincorporated landlord the requirement of Digital Taxation does not commence until April 2019?

Neil Patterson

8:22 AM, 1st February 2018, About 5 years ago

Digital tax only comes in for April 2019 if your business pays VAT and no further extension of this is planned until at least April 2020.

Neil Patterson

8:23 AM, 1st February 2018, About 5 years ago

Reply to the comment left by Mick Roberts at 31/01/2018 - 14:45
The banks that don't will have to switch to online statements I am sure!

Simon Hall

10:16 AM, 2nd February 2018, About 5 years ago

Reply to the comment left by Neil Patterson at 01/02/2018 - 08:22
Thanks Neil that's very helpful. I don't know why big accounting software companies are selling their softwares based on the fact Landlord Tax returns will have to be digitised by April 2018. (I am not naming those companies for obvious reasons)


9:08 AM, 3rd February 2018, About 5 years ago

Residential property is generally exempt from VAT

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