MTD and residential landlords

HMRC has expanded its MTD income tax pilot to accept quarterly updates from residential landlords with simple tax affairs.

This is not a total surprise. Indeed, it was predicted back in March when the MTD business-related Income Tax side emerged from a near yearlong controlled go-live phase.

While another step in the right direction, the list of software developers with Income Tax MTD-compliant software remains low (four at the time of publication).

The low availability of MTD-compatible Income Tax products is due to Mel Strides Ministerial Statement (July 2017), when he reversed early HMRC policy by mandating VAT-MTD ahead of income tax.

Since the announcement, most software companies have refocused resources to ensure their delivery of MTD-compliant VAT products well before next April's deadline.

The MTD Income Tax pilot is open to the self-employed and residential landlords (or their agents) with simple tax affairs, who wish to opt out of the current self-assessment regime.

To join the pilot they must be willing to keep digital records of their business transactions and commit to sending Income Tax updates to HMRC. At least on a quarterly basis using MTD-compliant software, instead of filing a self-assessment return

At this stage those with income from furnished holiday lets are not included.