Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
Landlords Face Two-Day Deadline for Making Tax Digital Reporting
Landlords who earn more than £50,000 a year from properties held in their personal name have just two days left to meet a key tax deadline. Those in scope must submit their first quarterly report to HMRC under the new Making Tax Digital (MTD) for Income Tax regime by Friday.
According to Mortgage Strategy, 864,000 sole traders and landlords are affected by this initial MTD deadline. The new legal requirement applies to sole traders and landlords earning over £50,000 from self-employment and property income.
The MTD for Income Tax programme will be extended to those earning more than £30,000 from April 2027, and to those earning more than £20,000 from April 2028. Landlords and letting agents should ensure that they are signed up, their software is compatible, and their MTD summary is submitted on time.
No penalties will be issued for late quarterly updates during the first year of the new rules. However, from the second year onwards, a points-based penalty system will apply. Taxpayers will receive one point for each missed quarterly deadline, and a fine of £200 will be issued if four points are accumulated.
The article notes that the first reporting deadline comes at a time when many people may be on summer holiday, and that the process may be challenging for some taxpayers. HMRC has published explanatory materials on the gov.uk website to assist those affected.
A recent HMRC consultation on timely payments in income tax self assessment has closed, with proposals to potentially bring forward tax payment deadlines from April 2029 onwards for those within the self assessment regime. The rules are not yet finalised.
Source: Mortgage Strategy