Making Tax Digital

As we have reported previously, some landlords will soon be required to keep digital tax records and submit tax returns quarterly rather than annually. This is part of the UK government’s “Making Tax Digital” (MTD) for Income Tax reforms which you can read about here.

This will be introduced from April 2026, with businesses, self-employed individuals, and landlords with income over £50,000 mandated to comply first. Those with income over £30,000 will be required to comply from April 2027.

In yesterday’s Spring Statement, the UK government announced that the threshold for MTD for Income Tax would be reduced to £20,000 effective from April 2028.

The government has an interactive tool to make it simpler for landlords to understand if they need to use MTD for Income Tax and when they need to start meeting their new obligations. The tool can be accessed by clicking here.

Last week SAL ran a webinar with HMRC which covered the latest updates to MTD for Income Tax, the benefits of joining testing early, and how to prepare yourself before MTD for Income Tax becomes mandatory in April 2026. A recording of the webinar will be uploaded to SAL’s website here in mid April.

Please note that SAL’s telephone helpline does not cover taxation advice and we recommend that members take advice on this specialist field from a good accountant.

Not yet a member? Join SAL today for instant access to online resources and advice.