Making Tax Digital Reminder
Is your first submission due on 6th August ?
When we first wrote to our landlords about Making Tax Digital (MTD), the new rules were still on the horizon. Since then, MTD has officially come into force, and for landlords who fall within the first phase of the rollout, the first quarterly submission deadline of 6th August is now fast approaching.
If you're receiving more than £50,000 per year from UK rental income and/or self-employed income combined, now is the time to make sure you're ready. If you've already registered and set yourself up with HMRC-compatible software, you're hopefully well prepared. If you haven't, there's still time to get everything in place before the first submission deadline.
Who Needs to Take Action?
The first phase of Making Tax Digital applies to individuals whose combined gross income from UK property and self-employed income exceeds £50,000 per year.
Remember:
The £50,000 threshold applies per individual, not per property.
If you jointly own a property, each owner is assessed on their share of the rental income.
If your income is below £50,000, these rules don't yet apply. However, the threshold is due to reduce to £30,000 from April 2027 and £20,000 from April 2028, so it's worth being aware of what's coming.
If You Haven't Started Yet...
Although the deadline is approaching, getting organised doesn't have to be complicated. Based on our research and discussions with HMRC-approved software providers, we continue to recommend a simple approach.
Separate Your Property Finances
If you haven't already done so, consider opening a dedicated bank account for your rental income and expenses. This makes record-keeping significantly easier and helps software categorise transactions correctly.
Choose HMRC-Compatible Software
We've spent considerable time reviewing the available options and continue to recommend Hammock. Having met with their team and explored the platform in detail, we're impressed by its:
Simple, landlord-focused design
Secure bank integration
Straightforward quarterly reporting
Excellent value for money
It also accommodates:
Jointly owned properties
Multiple properties
Different ownership structures
Collaboration with your accountant
To help you get started, Hammock currently offers:
A 30-day free trial
Complimentary online webinars demonstrating exactly how to use the platform
👉 Find out more about Hammock here.
Make the Most of the Information You Already Receive
As one of our managed landlords, you're already receiving detailed monthly and annual statements from us. These provide much of the financial information you'll need, making the move to Making Tax Digital considerably easier than starting from scratch.
Need More Information?
If you'd like a more detailed explanation of Making Tax Digital, including how the reporting process works, future rollout dates and answers to some of the most common questions, you can read our original guide below.
👉 Read our guide to Making Tax Digital here.
We're Here to Help
Making Tax Digital is one of the biggest changes to landlord taxation in recent years, but it doesn't need to be overwhelming. Our aim is simply to ensure our landlords are well prepared and have access to the right information and tools before each deadline arrives.
If you're unsure whether the rules apply to you, or you have a question about the practical steps involved in getting set up, please don't hesitate to contact Emma Osborn at emma@bristolreslet.com.