Property tax
Share this post
Property tax

Making Tax Digital delayed to 2024 for landlords

Hollie Chapman
Content Manager

Landlords who complete self-assessments will have an extra year to prepare for Making Tax Digital, which will now be introduced in April 2024 instead of 2023.

What is MTD?

Making Tax Digital (MTD) - the digitisation of tax reporting - is the biggest shake-up of the tax system in recent memory.

It aims to replace manual processes with digital ones and change the reporting period from annual filing to quarterly reporting, submitted through compatible software.

What does this mean for landlords with personally owned property?

Landlords with rental income of £10,000 per year (£833 per month) or greater must start using Making Tax Digital (MTD) accounting software to submit tax information to HMRC.

Currently, landlords provide HMRC with tax information once a year via a personal self-assessment tax return.

From the new date of 6 April 2024, landlords (or their property accountants) will need to provide this information every quarter and it must be submitted using compatible software.

In a press release, HMRC said that it recognised the challenges businesses and landlords face as the country emerges from the pandemic, and that a later start for MTD would allow those required to join more time to prepare.

Does this impact limited company landlords?

Landlords who own their properties via an SPV / limited company do not need to become MTD compliant by April 2024.

The government has published a consultation on the future design of Making Tax Digital for Corporation Tax, and has said it will not mandate its usage before 2026.

Prepare for MTD by joining Provestor

Provestor is a cloud accountancy service, meaning all of your records are held digitally and are MTD-ready.

Learn more about how we help landlords prepare for MTD
Stop scrolling and subscribe

Property tax news, free expert guides and tax calculators straight to your inbox, once a month.

Hollie Chapman
Content Manager

Recent blog posts

Property tax

Tax Changes for Furnished Holiday Lets

The Government has recently announced several tax changes that will impact furnished holiday let owners. In this blog, Provestor’s Client Manager Chris Littlewood sets out the key things property investors need to know to retain access to business rates.

By Chris Littlewood | 13/06/2022

Queen’s Speech 2022: Key takeaways for landlords

In the Queen's Speech (May 10), the government announced its Levelling Up and Regeneration Bill, as well as a Renters Reform Bill. We’ve summarised the key takeaways for landlords and property investors in this post.

By Hollie Chapman | 13/05/2022

Spring Statement 22: Overview for landlords

Overall, the Spring Statement 2022 was relatively quiet for landlords. In this post, we look at the key areas that property investors need to know about.

By Hollie Chapman | 31/03/2022