Making Tax Digital (MTD) for unincorporated businesses is set to go live in 2024, and while that seems like a lifetime away, it will creep up very quickly. Importantly, this is to include landlords whose income from property is over £10,000 per annum.
| Watch our recorded webinar for free on this link |
*Originally published March 2021 NB: some details in the webinar cannot be updated, please see written details here instead.
*Updated Oct 2021
In this webinar, in partnership with FreeAgent, we will be discussing the deadline for landlords, and showing a demonstration of the FreeAgent software, recommended for landlords.
FreeAgent benefits:
- Free app to generate and send invoices on the go, take pictures of receipts and add them to accounting transactions
- Simple to use payment allocation and bank feed
- FreeAgent software is free to customers of Natwest, Royal Bank of Scotland or the customers of the new online bank, Mettle
One of our senior partners, Pete Edwards, will be on-hand to answer all of your questions during this webinar, so please do take the opportunity to speak with him live on Friday.
If you can’t make it to this webinar we will be releasing the recording soon after, please follow us on LinkedIn, Facebook, or Twitter to access the link as soon as it’s available.
What Is MTD, and Why Does It Affect Landlords?
MTD stands for ‘Making Tax Digital’, it’s a new requirement which has been around for a couple of years for some businesses, but is soon to be filtered down to almost all businesses, and this includes landlords.
Essentially MTD is changing the way businesses keep financial records. Large businesses already must comply, using approved software from third parties like Quickbooks, FreeAgent, or Xero. Landlords whose income is £10,000+ per annum from rental properties before expenses will need to ensure they are compliant by April 2024.
So whereas you might be keeping track on a spreadsheet at the moment, we’re sorry to say that’s all about to change. But there are great benefits in using a digital cloud bookkeeping solution, such as:
- Reduced time spent on administrative tasks
- Easier overview of income and outgoing expenses
- Simple submission of MTD quarterly returns
To comply you will need to select an MTD approved software provider to work with. We have partnered with several leading solutions, you can find out more about those here, most of which are suitable for landlords – if in doubt speak with your accountant for a tailored recommendation.
While there is plenty of time before the deadline for landlords to be compliant, change can take time. So get ahead of the rush and tick this one off your to-do list early, and you could even benefit from using the software in the meantime.
If you have any questions, please do contact us, our landlord accounting specialists will be happy to assist you. You can also find out more about our landlord accounting services here.
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© 2019 Warr & Co Chartered Accountants. Warr & Co Chartered Accountants is a member of The Institute of Chartered Accountants in England & Wales (ICAEW). Whilst the information detailed here is updated regularly to ensure it remains factually correct, it does not in any way constitute specific advice and no responsibility shall be accepted for any actions taken directly as a consequence of reading it. If you would like to discuss any of the points raised and / or engage our services in providing advice specific to your personal circumstances, please feel free to contact any one of the partners on 0161 477 6789 or contact us via our website forms. Warr & Co Chartered Accountants are registered to carry our audit work in the UK, our audit registration number is C002961684, for more information please visit www.auditregister.org.uk.