MTD and an End to Accidental Landlords ?

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    MTD and an End to Accidental Landlords ?

    Now that we know every LL will be captured by the new MTD Reporting Rules from April 2023 (at the latest) - do you think LLs with just one property will abandon the PRS in large numbers?

    I'm unsure whether Letting Agents will be competent enough to take on this responsibility - and I cannot see how that would work anyway as they'd need to know the LLs other income too.

    MTD has been operating for a little while now - I was enrolled in a previous business - and it was pretty straight-forward IF you were already used to that accounting/reporting environment - your average accidental LL won't be prepared for this.

    Hopefully, we might see a surge of young newly qualified accountants start out on their own and focussing on this area - a nice income stream for them and hopefully controlling any excessive charges being levied by more experienced firms seeing an open-cheque opportunity.

    #2
    MTD isn't going to be difficult for the organised person

    Comment


      #3
      It should sort out the men from the boys, and I tell people being a landlord is a business and as such make a profit, its about being professional and organised

      Comment


        #4
        It won't only be small time landlords that suffer, many one man businesses will too, particularly those who still use paper and will have to pay an accountant 5 times a year instead of once. The article I saw said it was only for LLs with no other income. Is that correct?

        Comment


          #5
          Its landlords with a turnover of more than £10,000 a year. So any property rented for £830 a month. Basically nearly all landlords!!. Starts April 2023. Just got to do 4 times a year instead just one time in jan. once you get a system going it should not be too bad.

          Comment


            #6
            The simple way : You take last year's - 12 months rental income , expenses and profit and divide by 4 and submit the 25% figures each quarterly return and submit the real 12 months figures in the 4th Quarter Tax Return.

            Comment


              #7
              I know many who use pen and paper, there should be a way for those who do to summit it 4 x a year by paper? My parents are in there 70s and trying to get them set u will a nightmare

              Comment


                #8
                Originally posted by jase222 View Post
                I know many who use pen and paper, there should be a way for those who do to summit it 4 x a year by paper? My parents are in there 70s and trying to get them set u will a nightmare
                The answer is in the name - Making Tax Digital.

                No more paper submissions

                Comment


                  #9
                  I agree it's in the name but many people particularly those who are old school like my parents, why should they change? My dad's been doing it by pen and paper for 40years,

                  Comment


                    #10
                    Originally posted by jase222 View Post
                    I agree it's in the name but many people particularly those who are old school like my parents, why should they change? My dad's been doing it by pen and paper for 40years,
                    Looks like you will be doing it for them then.

                    MTD is a step forward imho, if not a bit of hassle to adapt to

                    Comment


                      #11
                      What he will be doing is selling a couple and increasing rent on others to pay the increased cost of his accountant, and I suspect many will be doing the same, ultimately the tenant will lose.

                      Comment


                        #12
                        40 - 50% of landlords don't declare their income at all - according to HMRC.
                        So this initiative isn't going to have that much effect on a lot of accidental landlords.
                        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                        Comment


                          #13
                          HaHa but you're forgetting the new Let Property Campaign which encourages landlords who might have forgot to pay their taxes to er pay them.

                          So the 40-50% of non-payers will all be up to date by the summer.

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