Government ramps up campaign to prepare landlords for Making Tax Digital

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Government ramps up campaign to prepare landlords for Making Tax Digital

The government claim they are working with the software industry to make Making Tax Digital (MTD) compatible products available for landlords.

In answer to a written question, the government claim they are ramping up their campaign to inform landlords about Making Tax Digital.

Under the controversial scheme, from April this year, landlords earning more than £50,000 will be required to keep digital records and submit quarterly updates to HMRC using authorised Making Tax Digital-compliant software.

Making Tax Digital will help landlords keep on top of their tax affairs

Independent MP James McMurdock asked the government: “What steps HM Revenue and Customs (HMRC) is taking to ensure that sole traders and landlords impacted by the new Making Tax Digital for Income Tax rules are aware of their obligations.”

In response, Labour MP Dan Tomlinson says the government is working to inform landlords of their obligations, claiming Making Tax Digital will help keep landlords on top of their tax affairs.

He said: “The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.

“This includes targeted media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, to suit different needs and budgets. Free options will support those with the simplest affairs.

“MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.”

The government has published guidance to help landlords find the right software for MTD, including a list of approved software providers.

Alongside this, a new online search tool has been launched, which asks a series of questions tailored to sole traders and landlords, before generating a personalised list of compatible MTD software options.

No real benefit

However, as previously reported by Property118, despite the government claiming Making Tax Digital will help landlords, an accountant says this is not the case.

Simon Misiewicz previously told Property118:  “There’s no real benefit beyond maybe streamlining some of the work you already do,” he says. “Does it help with tax returns and submissions? The truth is, I can’t see how.

“There’s no advantage for the individual in submitting quarterly returns, because HMRC doesn’t do anything with them until the end of the year. You don’t pay your taxes any earlier, and there is no real cash-flow benefit for the government”.

The government admitted in the Making Tax Digital impact assessment that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115.

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Labour-run council hires extra staff for selective licensing crackdown

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Labour-run council hires extra staff for selective licensing crackdown

A council has doubled the size of its staff to deal with selective licensing.

Westminster council claims it has recruited 52 new posts to its Private Renters Team to process selective licensing applications and move from “reactive enforcement to a more proactive approach”.

The licence costs nearly £1,000, and an online reporting tool has been launched for residents who suspect a property is operating without the correct licence.

The news follows an announcement by Mansfield District Council recently that it had underestimated how many PRS homes would need to be licensing and recruited two more staff members.

Deliver real change in the private rented sector

The Labour-run council says the response to the selective licensing scheme from landlords “has been far stronger than anticipated” and has received more applications than expected.

Cllr Ellie Ormsby, cabinet member for regeneration and renters, claimed extra staff will help support renters.

She said: “Selective licensing has given us the ability to significantly expand our Private Renters Team, allowing us to move from reactive enforcement to a proactive approach that raises standards across Westminster.

“As new duties come into force under the Renters’ Rights Act, Westminster Labour is making sure the council has the capacity to meet its responsibilities, protect renters, and support responsible landlords. This expanded team gives us the tools we need to deliver real change in the private rented sector.”

Help target enforcement

Westminster City Council claims its Private Renters Team will now focus on increasing compliance across the borough by identifying properties that are not registered but should be licensed under the selective licensing scheme.

The council’s online reporting tool will allow tenants and residents to report a property they suspect has no licence. It claims: “This will help us target enforcement more effectively and ensure that no one gains an unfair advantage by avoiding their responsibilities.”

The council also points out that when a landlord fails to obtain the correct licence, tenants may be eligible to apply for a Rent Repayment Order, allowing them to reclaim up to 12 months’ rent paid during periods of non-compliance.

As previously reported on Property118, selective licensing does more than good, with government guidance suggesting selective licensing should only be used as a last resort.

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