Many Making Tax Digital software packages cannot file returns
Summary
The article reports that a significant share of software listed for Making Tax Digital for Income Tax cannot yet file the final tax return, despite being presented as compatible for landlords. It says landlords should check not only quarterly update functionality but also whether the software can complete the year-end return and support all relevant income types.
Why it matters
Residential property surveyors who advise landlords or work alongside tax and compliance processes should be aware that software capability varies materially across HMRC-listed products. This affects landlord readiness for MTD compliance and may influence client guidance on digital record-keeping and reporting workflows.
Key points
- HMRC lists 128 products for UK property income, but only 84 can currently send the tax return.
- 32 products show the tax return as in development and 12 do not include it.
- Landlords are advised to check software support for all income types they need to report, not just quarterly updates.
- MTD for Income Tax started in April for landlords and sole traders with income over £50,000 and will extend to those over £30,000 from April 2027.
- Only 11 products are built solely for UK property income, and only 4 of those can file the tax return now.
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