Quarterly Digital Tax returns dropped from Finance Bill

Quarterly Digital Tax returns dropped from Finance Bill

8:36 AM, 26th April 2017, About 5 years ago 9

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The requirement to complete quarterly digital tax returns to HMRC that included Landlords has been one of the 72 clauses to be dropped from the Finance Bill out 135 clauses in total.

The Government has slashed the size of the Bill in an effort to rush the legislation through before the end of this Parliament. This is after Labour refused to rubber stamp without question the record length Bill leading the Chancellor Philip Hammond to accuse them of being soft on tax avoidance.

The Treasury has however, said that government will try to push through legislation that has been postponed including Quarterly Digital Tax returns at the earliest possible opportunity in the next Parliament. Confidence must be high, because, that is obviously assuming the Tories win the General election!

Accountants are welcoming the deferral which allows for more testing time and feedback from users on the new ‘Making Tax Digital’ software. It also gives more time for the effects of this fundamental change to the tax administration system on businesses and landlords to be debated and considered by MPs.

There has been a lot of confusion from landlords over the new digital tax returns and this will be seen by many as a welcome all be it potentially temporary reprieve.


Tobias Nightingale

9:54 AM, 26th April 2017, About 5 years ago

Just curious here but do these requirements apply to non resident Landlords? As far as I know the digital tax account will have links with banks/bank accounts etc which will automatically fill income fields. But if your non resident or if even if your not from here originally I cant see them having the bank feeds.

It is clear the reason for the election is because there too many decent ish tory mp's that stand in the way of May/Hammond doing further bad policies and not just to LL.

Neil Patterson View Profile

10:19 AM, 26th April 2017, About 5 years ago

Hi Tobias

This scenario is not specifically mentioned in the Government overview >> https://www.gov.uk/government/publications/making-tax-digital/overview-of-making-tax-digital

But it does say "The government also recognises that for some, digital is genuinely not an option and where this is the case, an alternative will be provided."

Simon Lever - Chartered Accountant helping clients get the best returns from their properties View Profile

10:04 AM, 29th April 2017, About 5 years ago

There is a lot of unknowns still about Making Tax Digital (MTD) and the quarterly returns.

However, firstly it is not a quarterly tax return. Under MTD landlords will have to make quarterly returns of income and expenditure, on a cash basis unless you elect for a different basis, about their income to HMRC. This information will then feed into your personal tax account which will eventually replace the tax return.

Although the legislation has been dropped from the Finance Bill so that the bill can be passed in time for the election it will be re-introduced in new legislation shortly after the election. Even if Labour get in they will also legislate for it.

Full details of MTD have still not been published by HMRC but I doubt very much if there will be a deferral of its introduction so be ready for going live with it on 6 April 2018.

Also as all property, not in a separate partnership or limited company, has a year end of 5 April returns will be due made up to 5 July, 5 October, 5 January and 5 April each year.


10:16 AM, 29th April 2017, About 5 years ago

Reply to the comment left by "Tobias Nightingale" at "26/04/2017 - 09:54":

Do you have a source for your suggestion that data will be automatically linked in from bank accounts?

Only I'd have thought that it would be all but impossible to achieve that (1) for technical reasons, but (2) and more importantly, because it is very far from the case that all credits to a bank account represent income.

Kathy Evans

11:41 AM, 29th April 2017, About 5 years ago

Reply to the comment left by "Badger " at "29/04/2017 - 10:16":

HMRC don't care if it is accurate or not (as a long as it wrong in their favour). It's pretty easy to do, but not to put right when it is wrong - esp as HMRC are shedding staff so there'll be no one to phone.

Jiten Karia

15:26 PM, 30th April 2017, About 5 years ago

makes even more sense to get a landlord tax investigations insurance cover. Does anyone know of any good companies providing these. Thanks


20:57 PM, 30th April 2017, About 5 years ago

Landlord Tax Investigation Cover is available as part of the National Landlords Association membership options.

Monty Bodkin

8:10 AM, 1st May 2017, About 5 years ago

Reply to the comment left by "Jiten Karia" at "30/04/2017 - 15:26":

Landlord Tax Investigation Cover is included in my buildings insurance policy.

Ian Narbeth View Profile

11:39 AM, 2nd May 2017, About 5 years ago

I am probably getting cynical as I get older but I suspect HMRC wanted quarterly returns so they could impose £100 penalties for late submission several times a year on businesses that were not efficient.

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