Exemption from MTD on age/other basis?
2 months ago | 24 comments
Government says support in place for landlords ahead of Making Tax Digital
9:01 AM, 16th March 2026, 1 month ago
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The government has claimed it is offering support to landlords ahead of the introduction of Making Tax Digital, despite a slow uptake in registrations.
As previously reported by Property118, with less than a month to go until Making Tax Digital comes into force, only around 5% of taxpayers, including landlords, have signed up.
Under the controversial scheme, from April 2026, landlords earning more than £50,000 will be required to keep digital records and submit quarterly updates to HM Revenue & Customs using authorised MTD-compliant software.
MTD will help landlords
In a written question, Labour MP Tanmanjeet Singh Dhesi asked: “What recent assessment has the government made of the adequacy of HMRC support available for (a) sole traders and (b) landlords to help ensure they can meet the Making Tax Digital deadline.”
Labour MP Dan Tomlinson said the government was taking steps to help landlords meet the April deadline.
He said: “Making Tax Digital will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and make annual tax returns easier.
“The government is undertaking a range of activities to ensure those needing to use Making Tax Digital for Income Tax from April 2026 are ready and able to do so successfully.
“This includes targeted media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of Making Tax Digital-compatible products are available, to suit different needs and budgets. Free options will support those with the simplest affairs.”
He adds: “Supporting its introduction is a dedicated team of fully-trained Making Tax Digital advisors. From April 2026, new options will be available on HMRC’s Self-Assessment and Agent helplines tailored to the needs of Making Tax Digital users.
“Further support will continue to be offered through webinars, industry engagement and marketing activities targeted to reach those affected by the changes.”
No advantage to MTD
As previously reported by Property118, despite the government claiming Making Tax Digital will help landlords, an accountant says this is not the case.
Simon Misiewicz previously told Property118: “There’s no real benefit beyond maybe streamlining some of the work you already do, does it help with tax returns and submissions? The truth is, I can’t see how.
“There’s no advantage for the individual in submitting quarterly returns, because HMRC doesn’t do anything with them until the end of the year. You don’t pay your taxes any earlier, and there is no real cash-flow benefit for the government”.
The government admitted in the Making Tax Digital impact assessment that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115.
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Member Since February 2016 - Comments: 977 - Articles: 1
9:55 AM, 16th March 2026, About 1 month ago
If the government says it offers support, that normally means a complete opposite.
The idiocy of MTD is beyond comprehension and it is widely discussed as such on LinkedIn.
Member Since February 2018 - Comments: 4
10:04 AM, 16th March 2026, About 1 month ago
I have signed up for a 14 day trial with software supplier. How exactly does HMRC know whether you have enrolled on these systems ?
Member Since May 2014 - Comments: 88
12:16 PM, 16th March 2026, About 1 month ago
Reply to the comment left by Naomi Black at 16/03/2026 – 10:04
HMRC doesn’t know you’ve signed up for software, nor will it care. All they need to know is you submit on time and in the correct format.
As an (ex) accountant who likes spreadsheets, I’m after some free bridging software where I can simply input relevant totals and submit.
Anyone found such a solution? Please share if you have! 👍
Member Since August 2021 - Comments: 2
2:06 PM, 16th March 2026, About 1 month ago
I think MTD will mean that in a few years time we will be paying tax every three months . Just like VAT. Therefore the government will have a constant flow on money from us
Member Since January 2024 - Comments: 351
2:15 PM, 16th March 2026, About 1 month ago
Low cost options include VT, Lime Books, QuickFile, etc.
Most are not bridging software, but you can still plug the figures in as a journal (or you may as well connect a bank feed and use Rules to allocate transactions).
Member Since February 2018 - Comments: 4
2:16 PM, 16th March 2026, About 1 month ago
Reply to the comment left by Neil P at 16/03/2026 – 12:16
I trialled with Coconut but think Sage has a free offering.
So the 5% sign up article is unfounded
Member Since May 2024 - Comments: 18
2:25 PM, 16th March 2026, About 1 month ago
Reply to the comment left by Neil P at 16/03/2026 – 12:16
The government will know because to link it to your tax account you have to go through HMRC. I went with My Tax Digital as after 2 days of reading it appears the best deal is going to be to get a system that does the minimum possible and is free. I don’t want all my financial details stored on some third party software!
The whole thing is like an extra tax, many of these software providers want £20 a month, which will then surely increase once they have you in their system. It took a good half a day to register, go backwards and forwards with HMRC site which was very slow. Obviously I haven’t used it yet as I’m too busy with doing last year’s books.
Member Since February 2024 - Comments: 71
2:25 PM, 16th March 2026, About 1 month ago
Reply to the comment left by Paul La Plain at 16/03/2026 – 14:06
Yes, probably will have to pay tax each quarter. But it maybe a better system! As really we already pay “up front” with payments on account in July and January which are based on previous years liability, if that was over £1000 they want about half of the liability by 31st July, other half by 31st January and a balancing payment when they know the actual liability. I find that very confusing! Paying tax on income not actually received!
Member Since January 2020 - Comments: 93
4:10 PM, 16th March 2026, About 1 month ago
Reply to the comment left by Naomi Black at 16/03/2026 – 10:04
In Patma you enter your NI number in the setup process. Have you received a letter from HMRC confirming your registration?
Member Since January 2020 - Comments: 93
4:12 PM, 16th March 2026, About 1 month ago
Reply to the comment left by Neil P at 16/03/2026 – 12:16
HMRC Search Tool. – Find software that works with Making Tax Digital for Income Tax
https://www.gov.uk/guidance/find-software-that-works-with-making-tax-digital-for-income-tax