Growing role for agents as landlords struggle with Making Tax Digital
Summary
The article reports that Making Tax Digital is increasing administrative pressure on landlords, with a survey suggesting some may leave the rental market. It also argues that letting agents are well placed to support landlords with compliance as the MTD thresholds expand further in 2027.
Why it matters
Changes to landlord tax reporting can affect rental supply, client workloads and the compliance support expected from letting agents. Surveyors involved in landlord, investment or agency work should be aware of the operational and market implications if more landlords exit the sector or outsource compliance tasks.
Key points
- 22% of landlords surveyed have considered leaving the rental market because of MTD pressure.
- Landlords reportedly spend an average of 13 hours a month on tax and financial admin.
- MTD for Income Tax is said to be mandatory for landlords over the current income threshold, with the threshold due to fall further in April 2027.
- Landlords identify record-keeping, error risk and admin time as the main compliance challenges.
- The article suggests letting agents could play a larger role in helping landlords manage MTD obligations.
Organisations:
Landlord Studio, HMRC
Regulations:
Making Tax Digital, Making Tax Digital for Income Tax
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