Making Tax Digital for Landlords: What You Need to Know with our complete guide As a landlord, you need to be aware of Making Tax Digital in our complete guide. Making tax digital for landlords is an area that some property investors and landlords find confusing. The subject of making tax digital for landlords raises many questions. You might wonder if there is making tax digital software for landlords to utilise. Making Tax Digital (MTD) is the government’s initiative to implement a fully digital tax system in the UK. The aim of the initiative is to make tax administration more efficient and easier for landlords through the implementation of a fully digital tax system. This guide explains what it is, how it works, and what you need to do to prepare. What are the basics of Making Tax Digital for landlords? Making Tax Digital for landlords is part of the government’s initiative to move the current tax system to digital tax service. It will be a requirement for 4.2 million taxpayers with business and property income over £10,000, including landlords, businesses, sole traders and Partnerships, for their Income Tax liabilities. The aim of Making Tax Digital for landlords is to make preparing and submitting tax returns easier using specific HMRC-approved software. Under the Making Tax Digital requirements, landlords must keep digital records and use third-party software to submit their tax returns to HMRC. Under the changes, landlords required to use Making Tax Digital will need to keep records of their income and expenditure digitally and send a quarterly summary of income and expenses, plus an end-of-year report using compatible software. HMRC has stated that digitising the UK tax system through Making Tax Digital will help landlords to prevent avoidable mistakes which cost billions of pounds annually in lost tax revenue. Making Tax Digital for landlords is being phased in over several years across the UK. It has already impacted VAT, with Income Tax and Corporation Tax due to follow. There are implications for landlords who pay Income Tax via Self Assessment with taxable income of £50,000 or over. To see what else HMRC says about Making Tax Digital for landlords, please visit here. What you should do next It would be easy to read this guide and then do nothing, particularly if you think that Making Tax Digital for landlords is something not to worry about for this tax year. MTD for ITSA will be something that affects you in the near future, so I advise you to get expert advice sooner rather than later. Making Tax Digital software for landlords will be commonplace, and you will need to be able to use it confidently to save money on taxes. Or, you will need to appoint a property tax accountant who can professionally take care of this for you and your property business, while ensuring you are tax compliant and maximising your profits. I advise you to speak to my team of property tax accountants today: simply book in time with them here and start lowering your tax bill.
Making Tax Digital for Landlords: What You Need to Know with our complete guide As a landlord, you need to be aware of Making Tax Digital in our complete guide. Making tax digital for landlords is an area that some property investors and landlords find confusing. The subject of making tax digital for landlords raises many questions. You might wonder if there is making tax digital software for landlords to utilise. Making Tax Digital (MTD) is the government’s initiative to implement a fully digital tax system in the UK. The aim of the initiative is to make tax administration more efficient and easier for landlords through the implementation of a fully digital tax system. This guide explains what it is, how it works, and what you need to do to prepare. What are the basics of Making Tax Digital for landlords? Making Tax Digital for landlords is part of the government’s initiative to move the current tax system to digital tax service. It will be a requirement for 4.2 million taxpayers with business and property income over £10,000, including landlords, businesses, sole traders and Partnerships, for their Income Tax liabilities. The aim of Making Tax Digital for landlords is to make preparing and submitting tax returns easier using specific HMRC-approved software. Under the Making Tax Digital requirements, landlords must keep digital records and use third-party software to submit their tax returns to HMRC. Under the changes, landlords required to use Making Tax Digital will need to keep records of their income and expenditure digitally and send a quarterly summary of income and expenses, plus an end-of-year report using compatible software. HMRC has stated that digitising the UK tax system through Making Tax Digital will help landlords to prevent avoidable mistakes which cost billions of pounds annually in lost tax revenue. Making Tax Digital for landlords is being phased in over several years across the UK. It has already impacted VAT, with Income Tax and Corporation Tax due to follow. There are implications for landlords who pay Income Tax via Self Assessment with taxable income of £50,000 or over. To see what else HMRC says about Making Tax Digital for landlords, please visit here. What you should do next It would be easy to read this guide and then do nothing, particularly if you think that Making Tax Digital for landlords is something not to worry about for this tax year. MTD for ITSA will be something that affects you in the near future, so I advise you to get expert advice sooner rather than later. Making Tax Digital software for landlords will be commonplace, and you will need to be able to use it confidently to save money on taxes. Or, you will need to appoint a property tax accountant who can professionally take care of this for you and your property business, while ensuring you are tax compliant and maximising your profits. I advise you to speak to my team of property tax accountants today: simply book in time with them here and start lowering your tax bill.
