Making Tax Digital for Income Tax: What Property Surveyors Need to Know
A message from Andrew McColl, Chairman of the RPSA
As surveyors, most of us would rather be investigating a suspect lintel or tracing the source of a damp patch in a cellar than wrestling with tax legislation. I completely understand that. But there is a significant change to how self-employed professionals manage and report their tax affairs, and the first phase is already underway. Every RPSA member, whether operating independently or running a small practice, needs to understand what this means for them.
We recently had a couple of members get in touch because they were feeling a bit overwhelmed. They knew something was changing, but were not entirely sure what it meant for them, particularly those who would not describe themselves as especially tech-savvy. That conversation prompted us to do something about it.
I asked Craig Spratt to put together a straightforward guide. Craig is a chartered accountant, the RPSA's own accountant, and someone who has specialised in working with surveyors for many years. He keeps the RPSA ship steady and has vast experience with the practical realities of running a survey practice. Importantly, he explains things in plain English rather than in accountancy jargon.
I should stress that Craig has always offered RPSA members a completely free, no obligation initial consultation.
Over to Craig.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is a government initiative aimed at modernising the UK tax system. Its goal is to make tax administration more effective, efficient, and easier for taxpayers by requiring digital record-keeping and more frequent reporting.
MTD for Income Tax Self Assessment (ITSA) will require individuals with qualifying income to:
Who Needs to Act Now?
MTD for Income Tax is being introduced in phases, based on your combined qualifying income from self-employment and/or property as shown on your latest submitted tax return:
Many property surveyors fall within these thresholds, particularly those running their own practices or with additional property income. It is worth checking your position even if you have not received a letter from HMRC, as the obligation is based on qualifying income rather than on individual notification.
How Will This Affect Property Surveyors?
For surveyors, the changes are more than just administrative — they will impact how you manage your finances throughout the year.
Increased Reporting Requirements: Instead of one annual tax return, you will be required to submit updates every quarter. While these are not full tax calculations, they do require accurate and timely record-keeping.
Digital record-keeping spreadsheets alone may no longer be sufficient unless they are linked to compatible bridging software. Most surveyors will need compatible digital bookkeeping or accounting software, whether that is a cloud-based package or another HMRC-compatible setup.
Greater Visibility of Tax Position. A positive aspect is that you will have a clearer, more up-to-date view of your tax liabilities throughout the year, which will help with cash flow planning.
Time and Process Adjustments: You may need to allocate more time regularly to bookkeeping or outsource this function to ensure compliance.
A Word on Penalties
If you are required to join from 6 April 2026, there is some reassurance worth knowing about. HMRC has confirmed that penalty points for late quarterly updates will not be applied during the first 12 months. That said, you are still required to file those updates before submitting your tax return, and late tax returns and late payments can still trigger penalties in the normal way. The grace period is there to give people time to adjust, not to delay getting started.
Common Challenges
How Craig Can Help
Readiness Assessment Craig can review your current systems and processes to determine how prepared you are for MTD and identify any gaps.
Software Selection and Setup: Not all accounting software is created equal. Craig can recommend and implement solutions tailored to your practice, ensuring they are compliant and efficient.
Ongoing Bookkeeping and Compliance Support: Whether you want full outsourcing or periodic check-ins, Craig can help ensure your records are accurate and submissions are made on time.
Tax Planning Opportunities MTD is not just about compliance — it is an opportunity to improve your financial visibility and plan more effectively. Craig can help you use real-time data to make better tax and business decisions.
Training and Support: If you prefer to manage your own records, Craig can provide training and ongoing support to give you confidence in the new system.
A final word from the Chairman
Making Tax Digital is not optional for those who fall within scope, and for some members, the first phase has now begun. If you have been putting this off or are simply unsure where to start, I would genuinely encourage you to take Craig up on his offer of a free, no-obligation consultation. It costs you nothing but half an hour of your time, and it could save you a great deal of stress further down the line.
This is exactly the kind of practical, real-world support that the RPSA exists to facilitate for its members. We want you focused on delivering outstanding survey work, not losing sleep over quarterly tax submissions.
You can contact Craig directly at craig@csmaccountancy.co.uk
Andrew McColl, Chairman, Residential Property Surveyors Association
