Making Tax Digital

SHARE POST

The Government have confirmed that making tax digital for income tax self-assessment will cost landlords both extra money and time.

Making tax digital will apply from April 2026 for those with a qualifying income over £50,000 and from April 2027 of those qualifying over £30,000.

The deadlines were set out in November by the treasury but more details have come out.

New regulations require a relevant person to keep and preserve their tax rolls electronically. Requiring submitting reports to HMRC using approved software.

A report of the business trading or property income, allow of expenditure and cases of allowance or relief against such income must be submitted in relation to each tax year. Interim security reports must be submitted quarterly on the fixed date.

HMRC estimates those between a £30-£50,000 threshold may incur an additional average cost of £350 and an average additional cost of £110. Those above the £50,000 may incur an average traditional cost of £285.

These are potentially one off costs as well as ongoing yearly costs. Including purchasing the software, upgrading of hardware etc.

Register on our website for further information due to come at a later date here.

SHARE POST