New survey shows MTD confusion
Summary
A survey by property management platform August suggests significant confusion among landlords about Making Tax Digital for Income Tax, including when the rules apply and what compliance will involve. The research found low awareness of start dates across income bands and widespread expectations that quarterly reporting will add substantial administrative time.
Why it matters
Surveyors working with landlords, agents and property investors may encounter clients who are unprepared for MTD obligations and need signposting to accountants or software solutions. It also indicates a likely increase in compliance-related queries as more landlords come into scope over the next two years.
Key points
- 48% of landlords with qualifying income this year believe they are in scope of MTD.
- Only 28% of landlords due to join next April know they will be liable then.
- 75% of landlords in scope expect MTD to add at least four hours of work per quarter.
- 83% of landlords already in the scheme say they submitted their first quarterly update on time.
- Landlords use a mix of accountants, accounting software, landlord software and spreadsheets with bridging software.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
