Government defends Making Tax Digital for landlords

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Government defends Making Tax Digital for landlords

The government claims Making Tax Digital helps landlords stay on top of their tax affairs.

In a Parliamentary written answer, Exchequer Secretary to the Treasury, Dan Tomlinson, said Making Tax Digital works well for businesses “of all types and sizes”.

Making Tax Digital for Income Tax became compulsory in April 2026 for landlords and sole traders with qualifying income of more than £50,000.

The threshold will fall to more than £30,000 from April 2027, bringing a further group of landlords, property owners and self-employed people into the system.

MTD works well for landlords

Mr Tomlinson said: “The government has worked with taxpayers, representative bodies and software developers to ensure Making Tax Digital (MTD) for Income Tax works well for businesses of all types and sizes.

“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 worked with the software industry to ensure a wide range of options are available to suit different needs and budgets, including low-cost and free software, supporting those with the simplest affairs. Many products are designed for users who manage their own tax affairs or those new to digital tools.”

The news comes as landlords who have not signed up for Making Tax Digital (MTD) may soon find that HMRC has done it for them.

The tax authority is beginning automatic registration from this month, in stages, for people it believes should already be using MTD for Income Tax.

HMRC says more than 570,000 customers have joined the service, with more than 436,000 sending their first quarterly update.

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Landlords face £200 charge for missing selective licensing deadline

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Landlords face £200 charge for missing selective licensing deadline

A council claims a £200 late application fee for selective licensing is not “intended to be punitive” for landlords.

North East Lincolnshire Council’s selective licensing scheme came into force in April this year.

However, the council has announced that landlords have until October 8 to submit their application or face a £200 late fee and potential enforcement action.

Fee is not intended to be punitive

The selective licensing scheme costs £1,000, with accredited landlords facing a slightly cheaper fee of £725.

The council claims the five-year scheme is designed to improve housing conditions and reduce anti-social behaviour.

Whilst the council launched the scheme in April this year, landlords who have not yet applied are being warned they will face a £200 late application fee and possible enforcement action if they do not sign up before October 8.

When contacted by Property118, the council claimed the £200 late application fee was not designed to generate a profit.

A spokesperson for North East Lincolnshire council told Property118: “The £200 late application fee forms part of the approved fee structure for the scheme. The fee was calculated through an assessment of the additional work and resources required where landlords fail to submit applications during the six-month application period and cannot therefore be processed through the standard licensing route.

“The approved Fees and Charges Operational Decision Record (ODR) identifies that late applications generate additional administrative and compliance costs, including the identification of non-compliant properties, additional correspondence and engagement, compliance investigations, enforcement-related activity, and the processing of applications that require intervention beyond the normal application process.

“The fee is not intended to be punitive or generate a surplus. Licensing schemes must be operated on a cost-recovery basis, and fees are set to recover the reasonable costs associated with administering and enforcing the scheme. The council’s approved fee methodology reflects this principle.”

Enforcement action

The spokesperson adds: “Landlords have had a six-month period, from 8 April 2026 until 8 October 2026, to submit applications. This timescale was established to provide landlords with a reasonable opportunity to comply before additional charges apply. As previously communicated, landlords who fail to submit an application by the deadline will be required to pay the additional £200 late application fee and may also become subject to investigation and enforcement action where appropriate.

“The council has worked closely with Home Safe, its delivery partner, to ensure landlords and managing agents have access to support throughout the application period. This has included a dedicated licensing website, detailed guidance notes, frequently asked questions, direct communications to landlords and agents, stakeholder engagement events, information sessions, and access to one-to-one support.

“Home Safe continues to provide assistance to landlords who require help understanding the scheme requirements or completing an application.

“Landlords who have not yet applied are encouraged to do so at the earliest opportunity to avoid additional costs and potential enforcement action.”

To support landlords, the council says one-to-one support sessions for landlords who are having difficulty applying for a selective licence will take place on September 25 at Grimsby Town Hall.

Not fit for purpose

The news comes as a landlord in Great Yarmouth has slammed the council’s selective licensing application process as “not fit for purpose”.

Paul Cunningham, chair of the Eastern Landlords Association (ELA), told Property118 that the software used to apply for Great Yarmouth Council’s selective licensing scheme is “not user-friendly”, adding to a growing sense of frustration among landlords in the area.

The council told Property118 they want to work collaboratively with landlords on selective licensing.

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