Making Tax Digital for landlords is delayed by two years
3 years ago | 5 comments
Making Tax Digital for Landlords?
12:06 AM, 18th May 2023, 3 years ago
6
Hello, There’s more red tape for landlords to come – From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software
Those with an income of between £30,000 and £50,000 will need to do this from April 2027.
Still some time off, but for those landlords with only 1 or 2 properties and who only do 10 transactions a month (rent in and expenses such as maintenance) this will be a real extra burden.
Especially as the government does not intend to provide any simple and free software to use (as they do with PAYE), this means having to use xero or Sage or the like to submit the returns – I don’t think you will be able to submit a spreadsheet.
So that’s another £200 a year expense.
Derek
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Member Since January 2020 - Comments: 1102 - Articles: 1
8:30 AM, 18th May 2023, About 3 years ago
The start date for MTD keeps being put back and the proposed thresholds increased so it is by no means certain when or whether it will happen and what the precise requirements will be when it does. I recently saw a report that accountants are lobbying for quarterly reporting to be abandoned.
HMRC have confirmed whenever asked that it will be acceptable to use spreadsheets plus bridging software.
Member Since March 2023 - Comments: 1506
8:38 AM, 18th May 2023, About 3 years ago
Reply to the comment left by Seething Landlord at 18/05/2023 – 08:30
Yes, I have heard that but the bridging software will not be supplied by HMRC. I currently use Sage (for 3 companies) and that costs me £66 per month plus VAT. A lot of software these days you can’t buy outright you have to take a monthly subscription.
Member Since July 2013 - Comments: 1264 - Articles: 1
8:45 AM, 18th May 2023, About 3 years ago
I have used this for VAT and you can use a spreadsheet which it automatically uploads. There are free products approved by HMRC – I plumped for MyTaxDigital and will adapt my spreadsheet for rentals
What is odd is that it contains nothing you don’t type into the return anyway so maybe you’re right and it will be more onerous
Member Since August 2014 - Comments: 39
9:45 AM, 18th May 2023, About 3 years ago
My accountant seems to think that MTD will result in paying tax as you go along, rather than paying money on account base on the previous year’s tax return, but I’ve not had that confirmed. For those of us with void periods and exceptional expenses this would be a benefit.
I have experimented with Apari for the 2022-23 tax year and showed my accountant the result. It is MTD compliant and a possibility for the future, although I won’t be using it until MTD comes in.
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10:26 AM, 18th May 2023, About 3 years ago
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2:42 PM, 18th May 2023, About 3 years ago
Reply to the comment left by Derek STOBBS at 18/05/2023 – 08:38
My expectation is that free bridging software will become available once HMRC have finished developing the system, as is the case with MTD for VAT.