At the end of May 2018 HM Revenue & Customs has extended its Making Tax Digital for its business pilot to include landlords as well as self-employed individuals (although not yet partnerships).
So if you have a single buy-to-let or a portfolio of properties you can now opt to join the trial for Making Tax Digital for business! Details can be found on the HMRC website at https://www.gov.uk/guidance/use-software-to-send-income-tax-updates.
There are many sceptics who doubt that Making Tax Digital will happen on time which is mainly due to the fact that many small businesses will not be ready.
However it is clear that the government is very committed to Making Tax Digital.
Indeed, HMRC has made better than expected progress in delivering its pilot schemes.
The start dates for Making Tax Digital remain as April 2019 for VAT and April 2020 for businesses which includes landlords who which pay income tax on their profits. Both of these dates still look as if they are going to proceed on schedule although the start date for companies is still in question.
Making Tax Digital will only apply to landlords whose rent is £10,000 per year or more, so if you are under this limit, then you will not have to use Making Tax Digital when it becomes mandatory.
Final, Making Tax Digital will require new software to be compatible with which then allows you to submit the quarterly reports of income and expenditure required by HM Revenue & Customs. This will be an additional cost to your business.
At Babcocks, we have dealt with this issue and our software is already making tax digital compliant. Please call us for a free consultation to discuss your future filing obligations under Making Tax Digital.
If you would like our help to understand the implications in more detail for your specific situation, call us today on 02392 449732 or click on the ‘Request Call Back’ button below and we will be happy to have a chat.
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This is Vicky, signing out for now and remember – Behind every good business is a GREAT Accountant!