MTD income tax pilot extends to landlords

HMRC has expanded its voluntary Making Tax Digital (MTD) income tax pilot to include individual landlords with straightforward tax affairs.

By extending the pilot, self-employed businesses can use software to manage their business records and send quarterly income tax updates to teh Revenue instead of filing a self-assessment tax return.

The pilot was originally made available to sole traders with income from one business, before being expanded to individual landlords on 4 June 2018.

This does not include landlords with income from furnished holiday lets.

Those with income from other sources may still need to report it through self-assessment.

According to the government release, taxpayers can opt in to the pilot if:

  • they're a sole trader with income from one business
  • they rent out UK property (excluding furnished holiday lettings).

MTD will be gradually introduced to businesses and taxpayers in the coming years, with digital reporting for VAT-registered businesses on course to become mandatory from 6 April 2019.

Contact us to discuss digital tax reporting.