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The National Landlords Association has welcomed news from the government that the Making Tax Digital rollout has been delayed, which is good news for the 87% of landlords who still rely on spreadsheets and paper to maintain their financial records. The RLA agrees; their chairman said last year that landlords needed more time to prepare for such a radical change to the tax reporting system.
VAT Threshold
Landlords with an annual turnover less than the VAT threshold will no longer be forced to submit quarterly tax returns via the new digital system, although they can opt in if they choose. If they do choose to use the digital system, they can also use it for other tax reporting, which should allow for a more streamlined service (so says the government).
Delayed Implementation
Fortunately for everyone, the government has clearly listened to its advisers. The scope of the Making Tax Digital scheme will now not be widened until it has been shown to be successful and teething problems have been ironed out.
Back in March, the government announced landlords with an annual turnover of less than the VAT threshold would have until April 2019 to prepare for digital record keeping and tax returns. However, many professional bodies expressed concern that the £10k income threshold was too low and the technical infrastructure was not yet in place or reliable.
If you are still using paper or spreadsheets to keep track of your finances, now would be a good time to make the switch to landlord software:
