HMRC are slowly rolling out their Making Tax Digital (MTD) scheme. Eventually, selected landlords submitting their rental income and outgoings via self-assessment will need to embrace this new MTD requirement.
What will it involve?
Self-employed landlords with property income above £10,000 will need to follow the MTD for Income Tax rules from their next accounting period starting on or after 6 April 2023.
Essentially, affected landlords will need to upload quarterly figures – kept electronically – from their accounting software directly to HMRC’s servers. Most accounting software providers will provide this functionality.
And therein lies the rub. If your property business has income above £10,000, from April 2023, you need to be using accounting software that complies with MTD.
Many landlords still record their income and outgoings manually or use spreadsheets. Unless the spreadsheets can be adapted to provide the necessary upload functionality a more digitally responsive approach will be necessary.
Time to embrace a digital approach?
Although the MTD requirement is still some two years away, converting manual systems to a computerised approach takes time. We can help you select and convert your present accounting records to a software solution that can cope with MTD.
And there are real benefits. With a click of your computer mouse, you can access reports that give you real time information about your property business as well as satisfying the needs for MTD digital uploads to HMRC.
Please call if you would like to discuss your options.