New AI tool to help landlords with MTD
Summary
FreeAgent has launched an AI-enabled accounting feature aimed at helping landlords process letting agent rental statements and reconcile them more efficiently for Making Tax Digital for Income Tax compliance. The article says the tool is designed to reduce manual data entry and support digital record-keeping and quarterly reporting requirements as MTD thresholds are phased in.
Why it matters
Residential property surveyors may encounter landlords who need to organise rental income records and property-level transaction data more systematically. The development is relevant because MTD compliance affects landlord administration and may influence the way rental statements and property income information are handled.
Key points
- FreeAgent has added AI functionality to its accounting software for landlord rental statements.
- The tool is intended to categorise transactions and match rental income and fees to the correct properties.
- MTD for Income Tax requires digital records and quarterly updates for affected landlords and sole traders.
- The income threshold is currently £50,000, falling to £30,000 from next April and £20,000 from April 2028.
- The article estimates around 876,000 UK landlords will be affected over time.
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