Making Tax Digital – who knows what it means?
Summary
The article reports low public awareness of Making Tax Digital (MTD) for Income Tax, despite the regime already applying to some sole traders and landlords and further expansion planned from April 2027 and April 2028. It highlights that MTD requires digital record-keeping and quarterly income and expense updates to HMRC, with a soft landing on penalties for some early adopters.
Why it matters
Residential property surveyors may encounter landlords affected by MTD, particularly where they advise on rental portfolios, compliance, or property transactions involving income-producing assets. The rollout increases the importance of accurate record-keeping and awareness of tax-related obligations among landlord clients.
Key points
- Half of UK adults surveyed do not know what MTD for Income Tax involves.
- Landlords and sole traders with qualifying income over £50,000 have been in scope since April 2026.
- The income threshold is due to fall to £30,000 in April 2027 and £20,000 in April 2028.
- MTD requires digital records and quarterly submissions of income and expenses to HMRC.
- A soft landing on penalty points applies for late quarterly updates in the first year for new entrants.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
