Landlords won’t be forced into Making Tax Digital – claims impact assessment

Word on the street is that MTD will be such a disaster that they won’t go lower than £30k but don’t quote me! Hmrc have spend millions on this so won’t be backing down now.

As I said previously there will be exemptions but hmrc haven’t announced how to apply yet.

Reply to the comment left by Jennifer Adams at 17/09/2025 – 16:37
Well….despite what this post says, as of today the government hasn’t removed the text on gov.uk that says the limit will be £20K per annum for total income from sole-trading and property next year.

That’s pretty much everyone isn’t it?

To make matters worse for small businesses the government has withdrawn the service that small companies could use to submit their own CT600 forms, without giving sufficient notice to put other systems in place. In the same way that the Renters Reform Bill is only good for agents, that particular change is only good for accountants.

Historically, economic growth and growth in employment has come from the small business sector. But this government behaves as though if you don’t work for the public sector or are part of a union then you and your job shouldn’t exist. That’s perhaps not surprising as so few labour MPs have had a real job. One of the problems whenever you have a big labour majority is that you end up with people who have little understanding or experience of business making decisions that destroy the economy.

Labour politicians who are or have been landlords don’t seem to stay in post very long; bit of a shame in a way as these people at least know what being a landlord is like and that their only option faced with government interference in the market is to put the rent up.

Am I the only one who finds it interesting that the government HAS published the impact assessment for Making Tax Digital, but refused to publish the Justice Impact Test for the Renters Reform Bill?

I received this email today from HMRC:

Dear customer,

If you receive qualifying income from self-employment and/or property, you’ll be legally required to use Making Tax Digital (MTD) for Income Tax – based on the level of qualifying income – from the following dates:

• April 2026, if your qualifying income is over £50,000 in the 2024 to 2025 tax year

• April 2027, if your qualifying income is over £30,000 in the 2025 to 2026 tax year

• April 2028, if your qualifying income is over £20,000 in the 2026 to 2027 tax year (the government has set out plans to introduce legislation to lower the qualifying income threshold to this level)

So I can’t see much evidence of this changing. HMRC still seems to think that someone getting income from property and sole-trading who earns more than £20K per year next year is going to have to submit to MTD. Looks as though if government changed this they didn’t tell HMRC.

Reply to the comment left by Sam B at 10/09/2025 – 14:29
In other words these exemptions apply to few and i have no idea who.What on earth has religion got to do with it.Exactly what age do you have to be. .Did you mean exempt if you have never dealt with mtd in a previous job. Perhaps IT illiterate might work.

Reply to the comment left by Paul Essex at 10/09/2025 – 14:42
At least something to make me laugh which frankly what this nonsense is.. HMRC already have a passable online system for annual returns so why can’t landlords use this for quarterly returns. Is it all about collecting these obscene taxes earlier and issuing fines.

Reply to the comment left by Alexandra at 13/09/2025 – 11:55
Do not feel sorry for the agent, he/she should have all the answers or get a proper job.

Reply to the comment left by David at 19/09/2025 – 14:02
My question would be why does it have to be a quarterly return? Why can’t it just be annual as it always was?

Subjecting people earning £20K per annum to a quarterly return is hardly proportionate is it? It has a disproportionate impact on small businesses, small landlords and sole-traders. Large businesses will be using accounting software to submit VAT returns at least quarterly anyway. It seems to me that HMRC would be better off going after the people who AREN’T submitting tax returns annually, rather than going after sole traders and small landlords.

This MTD policy is just a ridiculous bit of control-freakery with a disproportionate impact on small businesses.

Reply to the comment left by Beaver at 17/09/2025 – 16:48
Yes I know what it currently says on HMRC’s website but I am talking as an accountant who has been involved with MTD since it was 1st thought about over 10 years ago. I have also written articles on the subject.

Those letters are being sent to all taxpayers who Hmrc think will be caught.

If you want to see what accountants think about this impending disaster check out http://www.accountingweb.co.uk

Reply to the comment left by Jennifer Adams at 23/09/2025 – 15:37
I looked at your link but couldn’t see any specific discussion on what accountants think of MTD. But I find it really odd that the government has published the impact assessment of MTD, and yet has refused to publish the Justice Impact Test of the Renters Rights Bill.

https://www.property118.com/government-withholds-renters-rights-bill-court-impact-study/

The Renters Rights Bill is another impending disaster.

I also find it bizarre that HMRC and the government announced closure of their online system that allows small companies to submit their own CT600, without allowing small companies sufficient notice to find something else.

https://www.wardgoodman.co.uk/news/hmrc-online-filing-service-to-close-2026/#:~:text=For%20Corporation%20Tax%3A%20Returns%20must,software%20to%20submit%20their%20accounts.

Never mind getting growth out of the economy…I’m not really convinced that this government wants a free-market economy at all. What they do consistently has a disproportionate negative impact on small businesses and the self-employed. But if you understood the history and economics of the UK, you would know that’s where all the growth in employment in the economy comes from.

There are loads and loads of comments plus a tab on the accweb website.