You should be aware that the Government intends to move everyone over to a new online-only tax filing system through its Making Tax Digital (MTD) plan.
The most recent update was made in January 2024 to the information that need to be provided – see the latest notes for reporting property income and profits on GOV.UK.
MTD requires individuals and businesses to submit quarterly returns to HMRC via MTD compatible software and it will apply to self-employed individuals and landlords with annual business or property income of:
- more than £50,000 from 6 April 2026
- between £30,000 and £50,000 from April 2027
If your income is under £30,000, you will not be mandated to use the scheme until a review into how it can be shaped to meet the needs of smaller businesses has been completed.
If you own property jointly – for example as a married couple – then you can each earn up to the minimum threshold (including any other income) before you need to use MTD.
You can sign up voluntarily now, so it’s worth looking into exactly what’s required now and discussing it with a property tax expert so you can make sure you have the most appropriate software ahead of the requirement coming into force.
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