Making Tax Digital for landlords

Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), also known as Making Tax Digital for Income Tax will come into effect: 

Read our guide about Where We Are With Makihng Tax Digital for further background and you can read further guidance from HMRC

Under Making Tax Digital, landlords will be required to send quarterly updates to HMRC, as well as a final declaration by 31st January.  

Landlords who don’t keep up to date records as part of their current record keeping may find the update difficult to handle and costly. Landlords will need to keep records in such a way that quarterly updates can be made to HMRC, whether this is through bridging software or using fully compatible software. An accountant can help you.

Landlords who own multiple properties 

Under Making Tax Digital, landlords with multiple properties will report all their UK property income together. Landlords won’t need to prepare individual quarterly reports for each UK property.  

Property income from overseas properties must also be reported under MTD, and will be reported separately to UK properties. 

Landlords with jointly-owned properties 

Where a landlord jointly owns a property, when considering when Making Tax Digital will apply from, only the individual’s share of income counts towards their qualifying income.  

Each person who has received income from a jointly-owned property will need to report their share of income to HMRC quarterly. 

If notice of their share of the income is made after expenses have been deducted, then this net amount will be considered as qualifying income.  

Proposed relaxations for landlords with jointly owned properties include: 

Need help understanding Making Tax Digital?

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Last updated: 29th August 2024