MTD for landlords
Updated: Jun 10
From April 2024, landlords who earn more than £10,000 per year from their properties, will need to keep electronic records and submit their tax returns digitally under the Making Tax Digital scheme.
Under this scheme, HMRC will require you to use software to:
keep digital records of your property and/or business income and expenses
send quarterly updates of your property and/or business income and expenses to HMRC
finalise your property and/or business income by submitting an end of period statement (EOPS) and final declaration to HMRC
Sending quarterly updates
Under the new rules, affected landlords will need to send a summary of their business income and expenses to HMRC every three months using compatible software.
The deadlines for submitting quarterly updates will be the same for everyone who has to follow MTD for Income Tax rules. From 6th April each year from 2024 onwards, these deadlines will be:
Finalising your income
At the end of the tax year, landlords affected by MTD for Income Tax will need to finalise their property and/or business income by submitting:
an End of Period Statement (EOPS) for each source of property or business income
a Final Declaration (which will replace the annual Self Assessment tax return)
The process of submitting an EOPS and final declaration for each source of property or business income allows you to confirm that the updates you’ve sent to HMRC throughout the tax year are correct. It also gives you an opportunity to add details about any relevant personal income or tax reliefs you received during the tax year, and to make other necessary adjustments.
For each tax year, you’ll be required to submit your required end of period statements and your final declaration by 31st January of the following tax year. You’ll also be required to pay the tax you owe in relation to each tax year on this date.
FreeAgent for Landlords
If you’re a landlord and you’re going to be affected by the introduction of MTD for Income Tax, you’ll be able to use FreeAgent for Landlords to follow the new rules.
It’s a version of their award-winning accounting software that they've been building specifically for landlords who:
do not treat their property rentals as limited companies for tax purposes
earn income from up to five properties
earn a combined property/self-employed business income of at least £10,000 a year
FreeAgent for Landlords is designed to make it easy for you to manage your property finances and will include all the relevant functionality of FreeAgent, including features that can automate the process of recording rental income. When MTD for Income Tax comes into effect, you’ll be able to use FreeAgent for Landlords to make the required tax submissions directly to HMRC.
Of course, we are always on hand with advice specifically tailored to your situation and we can help with the transition to MTD and software.
If you want to speak to us about this, just arrange a Zoom meeting with Barry or email us on firstname.lastname@example.org.