The new tax reporting regime for landlords

by | 9 September 2022

This year saw the last phase of VAT registered businesses sign up to HMRC’s Making Tax Digital (MTD) regime.

From April 2024, under MTD for Income Tax Self Assessment (ITSA), landlords and the non-VAT registered self-employed will also need to retain digital records and use third-party software to send the financial results for each quarter. This can still be recorded via a spreadsheet, as long as the data is imported digitally into the software used.

Quarterly period Quarterly deadline
6 April to 5 July 5 August
6 July to 5 October 5 November
6 October to 5 January 5 February
6 January to 5 April 5 May

A final end-of-year statement will then be required, including any adjustments to the above submissions by the standard 31 January filing deadline.

Whilst all of your rental income must be reported through the MTD ITSA regime, other sources of income such as income from employment or investments will need to be reported using either your:

  • Making Tax Digital compatible software
  • HMRC online services account.

Your domicile may also impact what you are required to report through MTD ITSA.

If your income from self-employment and/or property falls below £10,000, you can continue with reporting through Self Assessment. HMRC will use your 2022/23 tax return data to confirm your obligations.

HMRC have confirmed that individuals will be able to apply for an exemption from MTD ITSA obligations, this may be due to age, religion, disability or location. Trustees, Executors and Administrators are also exempt for the time being, however beneficiaries of bare trusts and beneficiaries of IIP trusts (where property income is mandated to them), will not be covered by this exemption.

If you become self-employed or a landlord after 6 April 2023 you do not have to join MTD ITSA until you have submitted your first tax return. However, you can voluntarily join the regime from the outset if you so choose.

If you are interested in finding out more, please do get in touch, to see how we can help you with your tax reporting obligations.

**** A December 2022 government announcement has delayed the MTD ITSA rollout. From April 2026 self-employed individuals, and landlords with income over £50,000 will be mandated to join first.
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