Making Tax Digital – very few landlords confident of upcoming change

A survey suggests that most landlords are not prepared for the Making Tax Digital (MTD) initiative. 

MTD is a government initiative aimed at modernising the UK tax system by requiring individuals and businesses to maintain digital records and submit tax information more frequently.

If landlords’ annual income is above £50,000 they have to comply from this year.

Landlords with an income between £30,000 and £50,000 will need to comply from April 2027.

A new small poll conducted amongst 305 landlords suggests that only 12.8% are very confident that they understand what MTD requires them to do. 

Meanwhile 48.2% say they’re either not confident or actively worried or concerned. 

Overall, 87.5% reported being worried to some degree, including 35.7% very worried and 51.8% a little worried.

The poll was commissioned by PropTech service August which says the result points to a significant implementation risk.

What is MTD?

The MTD initiative, coming into effect for some from this April, includes:

• Quarterly updates to HMRC – some landlords will have to submit accounts every three months rather than once a year;

• Digital record keeping – transaction details, amounts, dates and categories will have to be accounted for; and

• Software requirements – to comply with MTD, uses must use software compatible with HMRC systems.

This article is taken from Landlord Today