Editor's note: This brief was summarised by The Property AI Team from a report by Landlord Today. Read the original article for full details.
Making Tax Digital Currently Hits One in Six Landlords
A new study shows that 17.7% of landlords recorded annual rental income above £50,000, as the next quarterly update deadline under Making Tax Digital for Income Tax (MTD) approaches. The requirements currently apply to eligible individuals with qualifying annual income above £50,000.
That puts roughly one in six landlords within scope of the MTD for Income Tax regime.
Threshold Changes Ahead
The £50,000 threshold is set to fall over the coming years. According to the report, it drops to £30,000 from April 2027, and to £20,000 from April 2029.
As the threshold falls, more landlords will be brought into the MTD for Income Tax requirements.
What This Means for Letting Agents
For letting agents, the findings show that a significant share of landlord clients may already be filing quarterly MTD updates. With the next quarterly update deadline approaching, agents may face increased demand from landlords seeking support with income records and reporting obligations.
The forthcoming threshold reductions also suggest that more landlord clients will enter the regime in future years, widening the pool of those who need to keep on top of quarterly reporting.
The report does not include further detail on the study's methodology or the specific deadline date.
Source: Landlord Today