New tax obligations from April 2023
From 6 April 2023, significant changes will be made to the Self-Assessment reporting system for landlords with gross rental income above £10,000 per tax year. Bringing landlords within the scope of MTD is part of HMRC’s plan to make the UK tax system more efficient and to make it easier for landlords to get their tax affairs right.
Get ready to go digital
From 6 April 2023, if you are a landlord you will need to submit your annual Self-Assessment tax return online (unless you can satisfy HMRC that you are unable to comply with their online filing requirements due to age, disability, religion, etc.). As most people already submit their returns online, this particular requirement should not affect many landlords, however, if you are one of the few who submit paper returns then is vital that you make preparations in advance so that you are able to comply with HMRC’s online submission process. If you use Hawsons to prepare and submit your tax return for you, then because (wherever possible) we submit all tax returns online this condition will be automatically satisfied.
Quarterly financial updates
In addition to your annual tax return, you will also need to submit financial updates electronically to HMRC each quarter. You will need to use MTD-compatible software or a spreadsheet to do this. These quarterly updates are then used to form part of your annual tax return. This means that you will be required to make a total of five submissions per tax year to HMRC, instead of just one!
How can we help?
We understand that the new rules may seem daunting. At Hawsons we have a dedicated team of personal tax accountants at our offices in Sheffield, Doncaster, and Northampton who can help you to navigate the new rules and ensure that you meet your obligations to HMRC correctly and on time. Please do get in touch with us if you would like to discuss how MTD will affect you going forward.
More similar content
A report published by the Office of Tax Simplification (OTS) has recommended extending the deadline by which divorcing couples are able to claim spousal exemption on Capital Gains Tax when dividing their assets. Married couples or civil partners can transfer assets...
The Office of Tax Simplification (OTS) has recommended that the government double the Capital Gains Tax (CGT) reporting and payment deadline for disposals of UK residential property to 60 days. Rules introduced in April 2020 mean that a UK resident disposing of UK...
In the recent Budget, it was announced that the Stamp Duty Land Tax (SDLT) holiday for residential property will come to an end on 30th September 2021. However, the Government will start to taper the rates from the end of June 2021. The current temporary nil rate band...