Making Tax Digital: A Timeline for Landlords on the Upcoming Changes

Making Tax Digital: A Timeline for Landlords on the Upcoming Changes

HMRC has been planning to bring in new rules on how landlords file their tax returns for some time.

Here’s an update on the scheme, which is called Making Tax Digital (MTD), and a timeline for its introduction.

MTD will require landlords and the self-employed to:

• Keep digital records of all income and expenditure.
• Send HMRC quarterly updates.
• Submit an end-of-year final declaration.
• Use approved third-party reporting software.

The timeline for MTD compliance is:

• 6 April 2026, if your annual business or property income tops £50,000.
• 6 April 2027, if your annual business or property income tops £30,000.

There will be a points-based penalty system – and ultimately fines – for people who fail to comply.

Impact

Well-organised landlords who maintain digital records may only have to make minor adjustments.

However, old-school landlords who rely heavily on paper documentation are in for a big change.

Whichever category you fall into, start preparing for MTD now, as it takes time to implement new systems.

For more advice on preparing for MTD, contact us today