Landlords to test digital tax records

Landlords to test digital tax records

0:02 AM, 23rd April 2024, About 2 months ago 1

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HMRC is encouraging self-employed individuals and landlords to take part in testing a new digital tax record system.

From April 2026, those with a combined income from self-employment and property exceeding £50,000 will be required to use compatible software to keep digital records and submit quarterly updates to HMRC.

This threshold will reduce to £30,000 from April 2027.

Landlords to become familiar with Making Tax Digital

The testing process has now begun and offers an opportunity for landlords to become familiar with the new Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) system well ahead of its mandatory rollout.

This will allow participants to prepare their businesses and support their clients in a smooth transition.

Before signing up for testing, individuals should ensure their record-keeping software is compatible with MTD for ITSA – a compatible software list is available online.

Landlords interested in participating

For landlords interested in participating, they must be registered with HMRC for an Agent Services Account (ASA) and utilise the digital handshake to gain client authorisation.

An online information session will be held this Friday from 2-2:45pm.

The session will cover testing details, participation instructions, and offer a Q&A opportunity.

Speakers include HMRC officials Jonathan Athow, Craig Ogilvie, and Jennifer Staves.

Visit the .Gov website for more information on participating in the Making Tax Digital testing programme.


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Comments

Mick Roberts

15:03 PM, 23rd April 2024, About 2 months ago

I'm glad someone put this on & I know it's been done before, but I've managed with me Excel sheets.
But major changes to my business soon coupled with this MTD, & I was & still may do a separate post asking for help, but for now I'll put me notes down here to see what you other Landlords have done who are ahead of me in this.
My notes only done quick for now, no order.

Hammock software £87 pm expensive
Landlord Studio
Save photo receipts to each house?
My rents are Benefit tenants where rent is paid backwards, are there words in there where I can change the date period on say 1 June to 1 May-31May or 24 May-23 May? As my Letting Agents houses use PayProp & it has no date period & assume if due on the 1st, the rent payment covers for the next month up front?
Save email receipt to individual house?
Pulls the figures from the bank-How does it do this/know which tenant paying which house? Some of my tenants just use the word Rent & I have to guess.
Something the accountant can access online?
Maybe do from the phone if I'm away?
Download to computer should the software firm ever pack up/cease trading. What if not internet?
I have several houses & Hammock recommended to me looks good, but coming out at £1000 per year for several houses.
Hammock works out your tax bill too-Sounds good.
I like to see rents in, repairs out per property to see which tenant is causing more repairs.
I use Excel at moment which is tailored to me. If I don't get on with new software, is it easy to pull all rents/repairs/Phone Bills/Stationary etc. into my Excel or new program?
Can I write notes on per each house ie. if tenants pays odd payment for some extra she wanted like better taps better oven etc.

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