Making Tax Digital For Landlords Delayed Again
Announced in 2016 for implementation in 2020, landlords have dreaded the arrival of Making Tax Digital (MTD) with the need for quarterly tax returns and automated software. The good news is that it has been delayed once more to at least 2026.
We first covered MTD and explained the detail back in 2016 :Government Plans To Make Landlords File Tax Returns Four Times A Year - PDPLA News - Portsmouth and District Private Landlords Association Since then little has changed except the implementation date keeps moving further and further out.
The driver appears to be the logic that if everything is automated, the government will collect more tax but the reality is that switching to software products that have been approved by HMRC and changing the way we operate such that everything is fully digitised is going to take a long time. As one member put it, "No one in Government has worked out yet that if you want more people to pay their tax, you make paying tax easier!!!!!"
Anyway, the current proposal is that from April 2026 landlords will need to comply with the Making Tax Digital rules if property income is over £50,000 and April 2027 if property income is over £30,000. As always, our suggestion is that members do nothing until the precise rules are clear – which at present is unlikely before mid-2025. If you are moving to a property management package which claims to support MTD, then obviously that is fine but there is no guarantee that it will support MTD or will not need changes in order to do so, until the specifics are finalised in the year before it comes into operation, so if you don't need to change – then our advice continues to be, wait.
We have a website purely on this topic – feel free to signup for updates: Landlord Making Tax Digital - Home (landlordmtd.com)