MTD for Landlords
What does MTD for ITSA mean for Landlords?
From 6 April 2024, those Landlords affected will need to use MTD compliant software to maintain digital records of income and expenses. Maintaining paper records will no longer meet tax legislation requirements.
Landlords will be required to submit a digital summary of income and expenses to HMRC via MTD compliant software on a quarterly basis.
In real terms, this means that by 25 August 2024, you will need to have submitted your first quarterly summary to HMRC (to cover the period 6 April – 5 July 2024). Your tax, however, will still be paid via self-assessment as usual. You will no longer be required to report this income on a self-assessment tax return. Instead, an End Of Period Statement (EOPS) and final declaration will need to be submitted by 31 January following the tax year. This will be done via the MTD compliant software.
Benefits of early adoption
At Harold Sharp we have already been through the first phase of MTD with our VAT registered clients. Drawing on our experience, we know that MTD will benefit our Landlords in the following ways:
- Information can be accessed anytime/anywhere
- Digital records are easily retrieved and do not require physical storage
- Easier visibility to help manage your business more effectively
- More regular contact with your accountant
- Review profits on a quarterly basis and budget for future liabilities
Get MTD compliant today
We are passionate about the benefits of digital record keeping, which is why we’ve designed a number of early adoption packages using specialist software for Landlords (including more complex landlord structures e.g. HMOs, joint ownerships, limited companies) who want to invest in an effective way to manage their business.
Fancy seeing this in action? Contact Cathy Samuel for a demo.
Making Tax Digital for VAT
Making Tax Digital for Income Tax
What does this mean? When MTD for income tax becomes mandatory, affected businesses will be required to:
- maintain their accounting records digitally in a software product or spreadsheet (see above re MTD compliant software / bridging solution). Maintaining paper records will no longer meet the requirements of the tax legislation; and
- submit information quarterly to HMRC and finalise their tax position after the end of the tax year. The quarterly updates and end of year reports will need to made using a functional compatible software product that can access HMRC’s API (Application Program Interfaces) platform.
Self-employed businesses or landlords currently have the option to voluntarily opt-in to keeping digital records and submitting Income Tax updates to HMRC, instead of filing a Self-Assessment tax return, ahead of the requirement which will come into force in April 2024.
Making Tax Digital for Corporation Tax
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