Warning: many Making Tax Digital software packs can’t file returns
Summary
A software provider has warned that a significant share of Making Tax Digital for Income Tax products listed by HMRC cannot yet file the final annual tax return, even if they can submit quarterly updates. The article notes that landlords and agents should check software capability carefully, as the tax return function is a key part of compliance and not all products support the full range of income types.
Why it matters
Lettings agents and surveyors advising landlords may need to understand the practical limitations of MTD software when discussing tax compliance and landlord readiness. The issue is relevant to property professionals supporting clients with rental portfolios, especially where software choice affects filing obligations and deadlines.
Key points
- One in three HMRC-listed MTD products for landlord income cannot yet file the annual return.
- HMRC’s list includes 128 products ready for UK property income, but only 84 can send the tax return.
- Landlords with qualifying income over £50,000 are already in scope, with the threshold falling to £30,000 from April 2027.
- Propertymark has advised lettings agents that they may wish to help landlords navigate the new system.
- Users are advised to check whether software supports the tax return and all relevant income types before signing up.
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