It’s me again getting in a state about MTD?

The government claim Making Tax Digital works “well for those who need it”, despite ongoing criticism over the scheme. The controversial scheme came into force in April this year, with landlords earning more than £50,000 required to keep digital records and submit quarterly updates to HMRC using authorised MTD-compliant software. Landlords earning between £30,000 and £50,000 will join the scheme in April 2027. Can apply for an exemption In a written parliamentary question, Liberal Democrat MP James MacCleary asked: “what assessment has the government made of the potential impact of Making Tax Digital on those over-70?” In response, Labour MP Dan Tomlinson said: “The government has worked with taxpayers, representative bodies and software developers to ensure Making Tax Digital (MTD) for Income Tax works well for those who need to use it. “The government has worked with the software industry to ensure a wide range of options are available to suit different needs and budgets, including low-cost and free software, supporting those with the simplest affairs. Many products are designed for users who manage their own tax affairs or those new to digital tools. “Where a taxpayer cannot use MTD for Income Tax, for example due to age or disability, they can apply for exemption from the MTD requirements.” No advantage to Making Tax Digital 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.

by Readers Question

12:02 AM, 10th July 2026, 1 week ago 30

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Landlord News Landlords Questions

I’ve been thrown into a flat spin once again after reading that those poor sods who are already caught up in the MTD sh*tsh*w are fast approaching their first submission date and, knowing that will be me too in 2027, I was reminded that I have done nothing about getting myself ready for it

I am a 73-year-old techno dinosaur, and knowing that I will need to abandon the method that has served us well for the past 20 years (that being several self-designed Excel sheets to accompany a folder containing our receipts etc that goes in once a year to the accountant) I am TERRIFIED about what is heading down the line at me

I spoke to my s-i-l, and he reckons I need to find something that will work with XERO, which he is familiar with, so that he can help me, and bearing that in mind I had a go with the free trial GO version of Landlord Studio this morning. After several frustrating hours, I had added our 4 properties, our tenants and their rental amounts and dates. I even managed, with some help, to add the two of us as owners and to allocate our different shared percentages (because only I will need to engage with MTD in 2027)

Then I watched their demo, which tbh lost me within 2 minutes, but what became very clear very quickly was that, with 4 properties rather than just 3, we would be paying for a whole mass of functions and additions we don’t need: we don’t need marketing tools, or tenant finding tools or online rent collection options for starters

I am perfectly capable of remembering, with the help of our diary, when certificates are due, etc and I really feel that all we need is what we are obliged to provide to HMRC, which, as far as I can see, is some kind of a super simple digital tool that will collate and evidence our income and expenses and nothing else?

Is there a really straightforward and simple product out there that will do just that with no additional frills or fripperies, that will cost as little as possible and which will then tie up with XERO to submit my MTD report to HMRC???

Many thanks

Denise

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Tags: Making tax digital, MTD, Xero

Comments

amarni

Member Since July 2014 - Comments: 57

2:17 PM, 13th July 2026, About 5 days ago

Reply to the comment left by Hew de Bowen at 10/07/2026 – 17:30
The software you write about sounds something I would be able to use. My difficulty is wrestling with the losses (legal costs and expenses losses) accumulated since oct 2019 to 2025, in addition with high turnover. Would this package work for me? And can anyone recommend an easy to use -And understandable property accounting spreadsheet.
I have just bought an Apple mac which will in all probability see me out (age 78) and want to start afresh not transfer old info. For the HMRC – I am behind!
I would prefer to opt out too.

1 Report Comment Reply
Hew de Bowen

Member Since November 2022 - Comments: 8

2:41 PM, 13th July 2026, About 5 days ago

Reply to the comment left by amarni at 13/07/2026 – 14:17
Hi Amarni, I’ve just submitted my first quarterly statement using 123sheets and it appears to have worked, which is a massive relief as it was driving me mental. It’s definitely the easiest software to use, out of all those I tried. They supply a form to fill in, and you just have to fill it in, select it, and then click on ‘submit.’ You don’t have to use a spreadsheet, but you can if you like. I didn’t bother, but their video shows you how to link it to the form by clicking on ‘=’ on a field in the form, and then clicking on the required field in the spreadsheet.

However, I don’t know how you would deal with losses brought forward from previous periods.

Good luck, anyway.

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amarni

Member Since July 2014 - Comments: 57

3:22 PM, 13th July 2026, About 5 days ago

Reply to the comment left by Hew de Bowen at 13/07/2026 – 14:41
Thank you Hew for that. I want to be free of using a specific accounting Apple, Google, Microsoft accounting software which may be difficult to transferring over to an accountant’s own in the future. I will look at 123. Thank you and many thanks to the ‘dinosaur’ too.
There are really problems when tenants are now customer services with the landlord surrounded and treading in a landmine filled zone designed to trip and blow one up regardless of direction.

3 Report Comment Reply
Hew de Bowen

Member Since November 2022 - Comments: 8

4:46 PM, 13th July 2026, About 5 days ago

Yes. We’ve got to get rid of this government. They hate anyone who is trying to escape poverty.

3 Report Comment Reply
Denise G Read Full Bio

Member Since October 2011 - Comments: 142

9:15 PM, 13th July 2026, About 5 days ago

Reply to the comment left by Hew de Bowen at 13/07/2026 – 16:46
The Making Tax Digital (MTD) initiative was introduced by the Conservative government in 2015. It was actually another of the then-Chancellor George Osborne’s ‘gifts that keep on giving’, announced during the 2015 Spring Budget.

2 Report Comment Reply
Neilt Read Full Bio

Member Since May 2014 - Comments: 212

10:16 PM, 13th July 2026, About 5 days ago

Reply to the comment left by Denise G at 13/07/2026 – 21:15
We probably shouldn’t be too political on here, but the current government could have simply not proceeded with it.
The last and present governments were not and are not LL friendly. Which leavers us with one remaining choice,. Let’s hope that they come to the party..

2 Report Comment Reply
Hew de Bowen

Member Since November 2022 - Comments: 8

10:23 AM, 14th July 2026, About 5 days ago

Reply to the comment left by Denise G at 13/07/2026 – 21:15
Yes, the Conservatives made more than their fair share of mistakes. But Labour have added extra income taxes, NI, IHT on farmers, frozen thresholds, trashed the energy sector and made being a landlord far harder, not least with the RRA. There will be fewer and fewer rental properties available over the coming years. It will be impossible for young people to move to another town to get a job early in their career. They are addicted to high welfare spending – like a drug – they need it to stay in power.It’s disastrous for everyone.

4 Report Comment Reply
Neilt Read Full Bio

Member Since May 2014 - Comments: 212

12:29 PM, 14th July 2026, About 5 days ago

Reply to the comment left by Hew de Bowen at 14/07/2026 – 10:23
Well said Hew de Bowen, we’re selling our last two rentals in the South and heading West to rent for a while. The trouble is that so many LLs have exited the market that we’re having trouble finding places, and we have a dog. So if two people of equal status apply for a property, guess who’ll get it?

2 Report Comment Reply
Hew de Bowen

Member Since November 2022 - Comments: 8

3:06 PM, 14th July 2026, About 4 days ago

Reply to the comment left by Neilt at 14/07/2026 – 12:29
Yes, it harms landlords and tenants alike. So many problems in the world are caused by stupid people trying to do good.

2 Report Comment Reply
Mark Alexander - Founder of Property118 Read Full Bio

Member Since January 2011 - Comments: 12231 - Articles: 1441

8:48 PM, 18th July 2026, About 5 hours ago

Hi Denise

Is there any reason that you and Dale haven’t registered your rental property business as a partnership?

If you had done so you would be exempt from MTD. It’s not too late.

You operate the business together for profit, so based on the latest Upper Tier tax tribunal for CGH Corporation you are operating a “business” and according to the Partnership Act 1890 two or more people who are in business with a view to profit are a Partnership.

Do you not have an accountant advising you on this?

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