Third of Making Tax Digital software still can’t provide full returns
Summary
Research based on HMRC’s software list suggests that around one third of Making Tax Digital products for landlords cannot yet complete a full annual tax return. While most products can handle quarterly updates, only a minority are currently ready for all additional income types and items required by HMRC.
Why it matters
Surveyors advising landlords, investors or buy-to-let clients may need to flag that software capability varies significantly and that quarterly filing readiness does not guarantee full-year compliance. This is relevant to property income administration and could affect client preparedness ahead of the first annual return deadline.
Key points
- HMRC’s list includes 128 software products for landlords’ property income.
- 84 products show the tax return function as ready now, 32 are in development and 12 do not include it.
- Only 11 products are ready now for all 16 other income types and items listed by HMRC.
- Landlords must submit four quarterly updates plus a final tax return through compatible software.
- The first full-year tax return deadline for 2026 to 2027 is 31 January 2028.
Organisations:
HMRC, LetCompliance
Regulations:
Making Tax Digital for Income Tax
Locations:
Britain
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