MTD for landlords

15th December 2022

Landlords currently using self-assessment will be required to switch to using Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA for short) and applies to all landlords whose total property income is in excess of £10,000 per year, including:

• Rental income from UK rental properties


• Other UK property income such as reverse premiums or the grant of a lease


• Income from a Furnished Holiday Let business


• Rental income from foreign rental properties


• Other foreign property income such as the receipt of premiums



Excluded from the above list is income from renting a room to lodgers in your own home (where this falls below the Rent-a-Room threshold of £7,500, or £3,750 for a jointly owned home).


The threshold of £10,000 applies to gross turnover, rather than profit. It applies to the total gross income if there is more than one trade or property business, for example, if the individual has £5,000 of gross rental income and £6,000 of sole trade turnover, they will be in the scope of MTD as the combined total exceeds £10,000.


The £10,000 MTD ITSA threshold applies per taxpayer, not per property. HMRC have confirmed that MTD for ITSA will be introduced from April 2024. All businesses in existence immediately before 6 April 2023 will be required to join MTD for ITSA with effect from 6 April 2024, regardless of their accounting period end date.


What will I need to do?


Affected individuals will need to:

• Keep accounting records in a digital format (using suitable software) and


• File quarterly returns to HMRC to include details of their income and expenditure, and


• Submit an end of period statement (EOPS) after the tax year, plus a final declaration, to finalise their affairs.



Separate quarterly updates and EOPS will be required for each property business carried on, which could prove onerous if you have more than one source to consider.


However, don’t panic as Whitings will be here to support you every step of the way!


Disclaimer - All information in this post was correct at time of writing.
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