What Is Making Tax Digital For Landlords?

Making Tax Digital (MTD) is a major change to the way many landlords report income to HMRC. Instead of submitting information once a year through a Self Assessment tax return, affected landlords will need to keep digital records and make regular submissions throughout the year.

What Is Making Tax Digital?

Making Tax Digital is HMRC's programme to modernise the UK tax system. The aim is to move away from paper records and manual processes by requiring taxpayers to maintain digital records and submit information electronically.

Does Making Tax Digital Apply To Landlords?

Yes. Many landlords with qualifying rental income will be brought into the Making Tax Digital regime over the coming years. If you receive income from residential or commercial property, it is important to understand how the new rules may affect you.

What Will Landlords Need To Do?

Although individual circumstances may vary, landlords affected by MTD will generally need to:

• Keep digital records of income and expenses.
• Use compatible software.
• Submit information to HMRC during the year.
• Maintain ongoing compliance with HMRC requirements.

Why Are Some Landlords Concerned?

Many landlords are familiar with the current annual reporting process but have limited experience of digital bookkeeping or quarterly reporting requirements. As a result, some landlords are understandably concerned about the additional administration involved.

How Can We Help?

MTD For Landlords has been created to help landlords understand and manage their Making Tax Digital obligations. Our aim is to provide practical support, straightforward processes and affordable options designed specifically for landlords.