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Making Tax Digital For Landlords Delayed Again

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Property-Tax

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)

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About the author

Martin Silman

Martin began his landlord journey 18 years ago, while working in an international role for a global telecommunications company. Since retiring he has extended his portfolio, which he manages with his wife, but has always focussed on the ‘small student HMO’ sector preferring to offer homes in the community for small groups to the more common ‘pack them in and take the money’ mentality. He has chaired the PDPLA for the past 9 years and has overseen the Associations transition from small local self-help group to a much larger and more professional institution which is recognised and listened to nationally. Alongside his PDPLA role, he also has leadership roles in a number of other local organisations – bringing his unique perspective, driving for change and increased use of technology while respecting the history that brought us here.

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