MTD for income tax has continued to stay on the back burner with HMRC, with the most recent expected roll out date for landlords with income above £10,000 being from 6 April 2023.
Going forward, MTD will change the current structure of self-assessment and you, as a landlord, will have obligations and reporting requirements that you need to fulfil through quarterly reporting.
If your turnover from Furnished Holiday Letting exceeds the VAT threshold (currently £85,000), MTD will already apply, however from April 2022, as a landlord, you will be obliged to:
This will significantly bring forward the timescale in which HMRC receive information regarding your rental income and expenses and it is my belief that it will increase the administrative burden on landlords going forward.
As stated there is nothing concrete on the income tax side of MTD at the moment but as soon as the information is available further guidance will be provided.
If you are looking for advice relating to your FHL, please contact French Duncan Tax Assistant Manager Jen Kinnear.
This blog is the sixth in a series - you can see the first five blogs here:
|Click here to see Jen's profile and contact details.|