HMRC’s Making Tax Digital is a ‘step too far’ for many landlords

Just form a partnership (which has other potential benefits). Then TD doesn’t currently apply.

Reply to the comment left by Judith Wordsworth at 01/04/2025 – 15:46
The figures are for turnover so only two properties in the south east, or perhaps three up north – total overkill in these cases.

As Judith say, most landlords wont be affected by this – if you only have 1 or 2 properties or are a LTD company (or a partnership at the moment – that comes in later) you won’t be affected.

.. and by the time it does come in for all landlords, I will have either dies or sold up !

Reply to the comment left by Judith Wordsworth at 01/04/2025 – 15:46They probably will, you only need to own two or three properties. The income from any three of my lowest rent properties puts me over the limit. For the landlords owning less than that the task should be easy anyway.

It is all about control over people, nothing more.

MTD is totally pointless, you can do all your calculations on the back of a fag packet, tot them up (probably incorrectly), put the totals on Excel MTD bridging software and file with HMRC.

So the only ‘digital’ bit is the (potentially incorrect) Excel totals!

Reply to the comment left by Ryan Stevens at 05/04/2025 – 11:58
That’s what I thought but then I read some thing which talked about uploading directly from bank account to the spreadsheet. I do this already because it’s quicker but I then have to adjust to remove transfers and then add in credit card expenses.

So yes even if we are compelled to upload directly from bank account it seems pointless.

I think any adjustments on spreadsheets can be seen if you know how. Perhaps they will be looking at adjust ments and amendments or am I going too far with Big Brother fears.

Doing quarterly reports is eventually a way of getting more tax in. At the moment it is only reporting but in future it is rumoured that tax will be paid quarterly with an adjustment at year end. What a faff. If anyone is like me I get close to the year end and look to see how much tax is due then try and decrease it by doing some repairs on the property. I’d rather spend my money on repairs than give loads to the tax man. This would skew my quarterly reports and may look suspicious to the tax man who may flag it.

Reply to the comment left by Slooky at 05/04/2025 – 12:47
You’re not compelled to upload from a bank account. Obviously, if you are tech savvy you can, but there are lots of old skool bag of fag packet and paper cash book completers who do not need to. Either way, all HMRC receives is the total, not the detail.

When you say Tax Man (singular) you are probably correct. So the chances of things being picked up are pretty slim; there will be millions of taxpayers doing the same thing . In any event, why shouldn’t you carry out repairs? The Taxman will just have wasted his/her/its time if he/she/it starts an inquiry.

Reply to the comment left by Ryan Stevens at 05/04/2025 – 16:19

HMRC will be using AI to look for irregularities & inconsistencies, with real people looking at the small number that the AI kicks out.
It won’t be long before full details will be required to be uploaded, again using AI to throw out irregularities. For many of the MTD packages this will be a simple software change especially if the MTD is part of your accounts package. Those using bridging software it will be difficult to comply, HMRC will revoke the approval of said bridging software forcing you to using a compliant accounts package.
Uploading the full details is the only reason MTD makes any sense.

The actual purpose of MTD is by uploading every quarter the tax man can give you a reasonably accurate guide as to how much tax you owe at year end. To be honest in the case of landlords this isn’t too difficult to figure out. The other sector being affected by this is SELF EMPLOYED people (who may or may not have properties as well) – it is often this group of taxpayers that don’t put aside anything for tax and get caught out at year end. So I have no problems with MTD for SA except it will cost me more (yup software required or pay your accountant) – however Due to my partnership and LTD company ownership of properties I am not affected by it at the moment.

Reply to the comment left by GlanACC at 05/04/2025 – 17:52
If you’re self-employed you’ll being making 2 payments on account anyway. So it will make minimal difference in reality. IMHO.