In this LB Talking Points video, our Client Relationship Manager Amber Naughton and Tax Adviser Steven Cameron, discuss Making Tax Digital for Landlords, and how the rules will affect their current accounting practices plus the benefits this could have for their property business.
Self-employed businesses and landlords with annual business or property income above £10,000 will need to follow the rules for MTD for Income Tax from their next accounting period starting on or after 6 April 2023.
MTD is a key part of the Government’s plan to move to a fully digitalised tax system, with HMRC having ambitions of becoming one of the most digitally advanced tax administrations in the world. The MTD initiative is fundamentally changing the UK’s tax systems and processes for businesses. It aims to provide a modern, digital service that makes it easier for businesses to get their tax right the first time, which not only reduces the tax lost due to avoidable errors, but also reduces the cost, uncertainty and worry that businesses face when HMRC are forced to intervene.
The initial focus of MTD was aimed at VAT, with VAT mandated businesses being signed up to MTD in April 2019. By April 2022 all VAT registered businesses will be required to engage with MTD for VAT purposes.
The second focus of MTD is MTD for Income Tax Self-Assessment (MTD ITSA), which will include any unincorporated businesses or property landlords with income in excess of £10,000.00. Although today we will be focusing on MTD for Landlords the same rules will apply to an unincorporated trading business with income over £10,000.00.
If you have any questions or need help with the implementation of accounting software and systems, our team can assist you with this. Head to our Making Tax Digital Help Centre here: https://LBLink.uk/MTD
Please get in touch via the details below:
T: 01243 782 423
W: www.lewisbrownlee.co.uk
E: LetsTalk@LewisBrownlee.co.uk