HMRC has expanded its voluntary Making Tax Digital (MTD) income tax pilot to include individual landlords with straightforward tax affairs.
By extending the pilot, self-employed businesses can use software to manage their business records and send quarterly income tax updates to teh Revenue instead of filing a self-assessment tax return.
The pilot was originally made available to sole traders with income from one business, before being expanded to individual landlords on 4 June 2018.
This does not include landlords with income from furnished holiday lets.
Those with income from other sources may still need to report it through self-assessment.
According to the government release, taxpayers can opt in to the pilot if:
- they're a sole trader with income from one business
- they rent out UK property (excluding furnished holiday lettings).
MTD will be gradually introduced to businesses and taxpayers in the coming years, with digital reporting for VAT-registered businesses on course to become mandatory from 6 April 2019.
Contact us to discuss digital tax reporting.