Making Tax Digital (MTD) is the government’s initiative to implement a fully digital tax system in the UK, whereby taxpayers keep digital records and use MTD-compatible software to make tax submissions electronically.
MTD for Income Tax will require affected clients to use MTD-compatible software to keep digital records and make regular tax submissions to HMRC. For landlords and self-employed business owners with a combined property/business income of £10,000 or more a year, MTD for Income Tax will come into effect on 6th April 2024 and will replace the existing process of submitting an annual Self Assessment tax return.
Will MTD for Income Tax affect me?
MTD for Income Tax will apply to all landlords whose total property and/or business income is above £10,000 per year. They will be required to use software like FreeAgent to:
keep records of their property and/or business income and expenses in a digital format
send quarterly updates of their property and/or business income and expenses to HMRC
finalise their property and/or business income and submit an end of period statement (EOPS) and final declaration (which will replace the annual Self Assessment tax return) to HMRC
When MTD for Income Tax comes into effect in April 2024, FreeAgent for Landlords will support these tax submissions. This means you’ll be able to use the software to generate the submissions automatically and then send them directly to HMRC.
MTD for Income Tax isn’t coming into effect right away. Why should I consider using FreeAgent for Landlords now?
While MTD for Income Tax won’t be implemented until April 2024, it’s a good idea to become familiar with the process of using software to manage your property finances before it becomes mandatory to do so. Signing up for FreeAgent for Landlords when it becomes available will give you ample time to get used to this new way of working.
With our experienced team of support accountants on hand to help, you’ll also learn how to get the most out of using FreeAgent for Landlords before you’re required to start making MTD for Income Tax submissions.
Register your interest in FreeAgent for Landlords
Available from early 2023, FreeAgent for Landlords will help you get ready for the introduction of Making Tax Digital (MTD) for Income Tax in 2024.
Thank you for registering your interest, we’ll be in touch soon.
FreeAgent is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (register no. 799763) for the provision of account information services. Registered in sunny Scotland No. SC316774 - One Edinburgh Quay, 133 Fountainbridge, Edinburgh, Scotland, UK EH3 9QG