Tax Changes For Landlords

From April 2026 Making Tax Digital will apply to those who receive income from self-employment and/or property where gross income from these sources combined is above a threshold of £50,000. If a business/landlord is trading at 5 April 2025, it will be required to comply with MTD income tax from 6 April 2026 if it exceeds the £50,000 turnover threshold in the 2024/25 tax year (ie, the decision will be based on the 2024/25 tax return which can be filed from April 2025). Those with a gross income from these sources combined above a threshold of £30,000 will be mandated to join MTD income tax from April 2027.

When MTD income tax becomes mandatory, individuals within scope will be required to:

• maintain digital accounting records in a software product or spreadsheet. Maintaining paper records will no longer meet the legislative requirements; and
• submit quarterly updates to HMRC and finalise their tax position after the end of the tax year. The quarterly updates will need to be submitted using a functional compatible software product.

For advice about Making Tax Digital, ask for an assessment to help you decide if you are going to be caught under the new rules and make sure that you’re prepared for the new filing regime to avoid any unnecessary penalties from HMRC.

Joe Walters CTA

www.hwca.com

01244 400315