NRLA win as Making Tax Digital pushed back
The Government has announced it will push back the implementation date for the next stage of its Making Tax Digital (MTD) programme, which would have brought income tax self-assessment into scope, following pressure from the NRLA.
It will also increase the income threshold landlords must meet before they need to enrol with the new system.
Making Tax Digital is a plan by the Government and HMRC to Fully digitise UK tax
It had initially been proposed that all landlords with a gross rental income above £10,000 would need to be using MTD by 2024, meaning landlords - and similarly qualifying self-employed workers – would need to keep tax records and submit returns to HMRC digitally, through new MTD-compatible software.
The NRLA argued the £10,000 threshold was too low and would force smaller landlords with reliable, paper-based accounting systems to comply with systems they did not need and were not set up to use, arguing for the income threshold to be increased to £50,000.
It also warned against implementing MTD before the software and associated systems were ready, so landlords had decent lead in time to prepare and familiarise themselves with the new processes.
In response the Government has now revised both, with a new compliance dates of 2026 for those with incomes over £50,000 and 2027 for the those more than £30,000.
Chris Norris, NRLA policy and campaigns director has welcomed the news.
He said: “The announcement increases the threshold and pushes back implementation dates, the two things we specifically called for.
“We are pleased the Government has listened to what we and others in our industry have to say. This is a sensible move that will give landlords the time they need to prepare for the changes, increasing chances of a smooth transition once Making Tax Digital goes live.”
