MTD for Property Investors & Landlords

Our specialist team will guide you through the new Making Tax Digital (MTD) initiative..

Major tax changes for landlords are coming. So get in touch with Edge Accountants today in preparation for the property taxation shakeup that will impact you. Our specialist team will guide you through the new Making Tax Digital (MTD) initiative and ensure you’re up-to-speed with all the latest reporting requirements.

What Do I Need to Do to Prepare?

Getting ready for changeover day is a must. And we’re here to make the process hassle-free with our integrated services and expert team. You’ll need to be mentally prepared for a new online tax reporting system and accept the new digital approach. You’ll also need to sign up to software which aligns with HMRC’s online process. Keeping digital records is at the heart of this new initiative. The government claims this will minimise tax reporting mistakes made by HMRC and landlords.

How Can We Help You?

We know that change is always a bit daunting. But we can help you to get organised for the digital shift by:

Making Sure Your Software is Compatible with MTD for Income Tax
Registering you for MTD for Income Tax before 6 April 2023
Keeping you on top of your quarterly digital updates
Creating end of period statements (EOPS) and preparing a final declaration of your income by January 31 following the end of the tax year
Calculating your income for MTD for Income Tax

What will MTD Involve?

As a landlord, you might be wondering what MTD entails? Well HMRC is set to change the way it collects information about your income from UK property. The MTD initiative, which comes into effect from April 2023, will require all landlords with rental income over £10,000 to file a Return each quarter online. This Return will contain your rental income and expenditure using the same categories as you currently use in the UK Tax Return. The quarterly Returns must be filed within 30 days of the quarter end.

Frequently Asked Questions

Don’t be afraid to ask us questions. That’s what we’re here for. Here’s a list of FAQs to set you off on the right foot.

Where can I find free software packages that link to the MTD System?

As already mentioned, you need to use HMRC-compliant software. So far, six software providers have been approved by HMRC, with another three packages in development and set to be launched before the 2023 changeover date. A list of compatible software packages can be found via the HMRC website and all offer a free trial.

When Can I Sign Up For MTD?

You can actually sign up now via the government’s website. We can walk you through this process if you need guidance. Before you do so, you’ll have to use software which is compatible with the government’s system. Again, we can advise you on this. You’ll also need your National Insurance number to hand, as well as your Tax Reference number and Government Gateway user ID and password used for filling your last self-assessment return.

Are There any MTD Penalties?

While the government is still finalising MTD penalty legislation for taxpayers, there will be specific rules you need to follow. Failure to comply with MTD will result in penalty points. This will mostly apply to late filers. If the points stack up too much, a financial penalty will be imposed. Penalty points will reset to zero after two years. The later the payment is made, the more penalty points you will receive.