Following the recent announcements of the Making Tax Digital requirements, UK Landlord Tax, one of the leading Property Tax advisories in the UK have revealed their plans to offer expert advice to landlords affected by the changes.
The Making Tax Digital initiative (or MTD for short) is a new government initiative that aims to make tax fully digital. By introducing this system, the Government intends to improve the efficiency of tax reporting from the taxpayer, while also reducing the overheads for HMRC by way of reducing the administration burden on their systems.
Under the new system, the taxpayer must submit additional ‘updates’ every quarter instead of submitting one annual tax return by 31st January following the end of the tax year, thus requiring additional administration from the taxpayer.
There will also be a requirement for an ‘end of period statement’ to be provided by 31st January following the end of the financial year in order to confirm that the data entered in the previous submissions were accurate. It includes aspects such as the restriction of mortgage interest as well as other taxable income that could be related to such a claim. Lastly, there will be a ‘Finalisation statement’ to make sure that all the ‘updates’ are incorporated together in order to calculate the final tax bill.
Considering the increased demand that’s placed on the taxpayer as a result of Making Tax Digital, UK Landlord Tax has created a detailed guide that will help landlords grasp exactly how the new initiative is going to affect how they run their business. Besides being available on their official website, this guide can be requested as a report that has been specially produced to guide their existing clients with any questions they may have.
It is recommended that landlords contact the UK Landlord Tax team if they have any questions regarding the upcoming MTD changes. In the event that they require more detailed tax advice, they should expect to pay a modest fee for this service. It should be noted, however, that this fee can be refunded to them if they wish to partner with UK Landlord Tax long-term.
UK Landlord Tax specialises in property tax accounting and since they are landlords themselves, they are often able to help their clients save a lot more in taxes in comparison to generalist accountants. The UK Landlord Tax team aim to assist every landlord, regardless of whether they are just starting out or have already been letting for multiple years.