Making Tax Digital - Landlord version
Discussion
I know there is a mega thread on this somewhere, but I can't find it.
To be honest, I had been ignoring the emails from HMRC as our income is under £20k, so I didn't see the urgency.
Anyway. Scrolling down the email received today, I noticed the following:-
"If you’re a sole trader or landlord without an accountant or bookkeeper, register for this webinar for the latest information about MTD, to help you get ready for when MTD for Income Tax becomes a legal requirement from April 2026."
So I will sign up for the webinar, but can anyone briefly leg me know what is involved.
TIA
To be honest, I had been ignoring the emails from HMRC as our income is under £20k, so I didn't see the urgency.
Anyway. Scrolling down the email received today, I noticed the following:-
"If you’re a sole trader or landlord without an accountant or bookkeeper, register for this webinar for the latest information about MTD, to help you get ready for when MTD for Income Tax becomes a legal requirement from April 2026."
So I will sign up for the webinar, but can anyone briefly leg me know what is involved.
TIA
Thanks.
Further investigation on the internet, it appears that the system for landlords earning under £20k is still in development.
The holiday let situation will be challenging as 50% of the income is earned in August and usually nothing in January/February.
Will it be a case of pay tax upfront and then claim it back after January?
Further investigation on the internet, it appears that the system for landlords earning under £20k is still in development.
The holiday let situation will be challenging as 50% of the income is earned in August and usually nothing in January/February.
Will it be a case of pay tax upfront and then claim it back after January?
ALL landlords.
The threshold for tax year 2026/27 is £50,000.
In 2027/28 it reduces to £30,000
For 2028/29 it MIGHT reduce to £20,000 - depending on how things go in the first two years. After 2028/29 nobody knows.
The threshold is based on COMBINED sole trader business income and rental income. Rental income also includes any income received under the Rent-a-Room scheme.
For tax year 2027/28 there will be no penalties issued for non-compliance or late submissions. As of now, penalties will be levied from 2027/28.
This means, of course, those who join MTD from 2027/28 on do not get the bemefit of no penalties in their first year on the system - which seems a bit unfair to me.
The threshold for tax year 2026/27 is £50,000.
In 2027/28 it reduces to £30,000
For 2028/29 it MIGHT reduce to £20,000 - depending on how things go in the first two years. After 2028/29 nobody knows.
The threshold is based on COMBINED sole trader business income and rental income. Rental income also includes any income received under the Rent-a-Room scheme.
For tax year 2027/28 there will be no penalties issued for non-compliance or late submissions. As of now, penalties will be levied from 2027/28.
This means, of course, those who join MTD from 2027/28 on do not get the bemefit of no penalties in their first year on the system - which seems a bit unfair to me.
Slow.Patrol said:
I know there is a mega thread on this somewhere, but I can't find it.
!https://www.pistonheads.com/gassing/topic.asp?h=0&...
Mr Pointy said:
Thanks. 
I was looking in Finance and not Business
Added to my watch list
Slow.Patrol said:
The holiday let situation will be challenging as 50% of the income is earned in August and usually nothing in January/February.
Will it be a case of pay tax upfront and then claim it back after January?
Not that it affects you at the moment but MTD is about how and when you record and report income and expenses. It doesn’t change when you pay tax due.Will it be a case of pay tax upfront and then claim it back after January?
I’m presuming you already do a self assessment for your holiday let and pay any tax due??
Income etc from the year April 2024 till April 2025 is what you report to HMRC in January 2026 so you don’t pay tax “upfront”.
Stevemr said:
Anyone got any recommendations for software to deal with this?
Look on the main thread. VitalTax have just released their version but there are numerous others.https://www.gov.uk/guidance/find-software-that-wor...
Thundersports said:
As I understand it if your income is under 20k nothing changes.
Incorrect.You're not alone in thinking that.
April 2026 the threshold is £50K
Then I started paying attention to it earlier this week. I thought it said £50K income, I took that as take home. Then I took time to read it..... it's £50K turnover
I just had a look at TaxCalc today and MTD for income is going to be remarkably straightforward - very similar to their existing VAT Filer.
"MTD Quarterly Filer is our new MTD for Income Tax bridging solution and allows our customers to submit quarterly submissions to HMRC. Those familiar with VAT Filer, our MTD for VAT bridging solution, will recognise the simplicity with which those submissions can be made. Although MTD Quarterly Filer can ingest data from any spreadsheet, we have produced our own templates for recording transactions and summarising totals as a starting point for anyone that needs them."
Looks like £112 (plus VAT)
Compare this year's price for VAT Filer which is £93 (plus VAT)
https://www.taxcalc.com/business-mtd-for-itsa?utm_...
"MTD Quarterly Filer is our new MTD for Income Tax bridging solution and allows our customers to submit quarterly submissions to HMRC. Those familiar with VAT Filer, our MTD for VAT bridging solution, will recognise the simplicity with which those submissions can be made. Although MTD Quarterly Filer can ingest data from any spreadsheet, we have produced our own templates for recording transactions and summarising totals as a starting point for anyone that needs them."
Looks like £112 (plus VAT)
Compare this year's price for VAT Filer which is £93 (plus VAT)
https://www.taxcalc.com/business-mtd-for-itsa?utm_...
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