Feb

Landlords spared late filing fines in first year of Making Tax Digital

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Landlords spared late filing fines in first year of Making Tax Digital

The government has announced it will support landlords transitioning to Making Tax Digital (MTD) by waiving penalty points for late submissions during the first 12 months.

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 MTD-compliant software.

With just two months to go until MTD launches, HMRC is ramping up its campaign to inform landlords of the upcoming changes.

Not receive penalty points for late quarterly updates for first 12 months

In a government press release, the government have said occasional slip-ups won’t result in hefty fines.

The press release said: “Customers joining MTD for Income Tax in April 2026 will not receive penalty points for late quarterly updates, for the first 12 months.

“Under the new system, penalty points will be given for each late submission, with a £200 penalty only applied once four points are reached. This means occasional slip-ups won’t result in immediate fines.”

Now is the time to act

HMRC are now urging landlords to install software for MTD as soon as possible.

Craig Ogilvie, HMRC’s director of Making Tax Digital, said: “With two months to go until MTD for Income Tax launches, now is the time to act. A range of software is available and the system is straightforward and helps reduce errors. Thousands of volunteers have already used it successfully.

“This will make it easier for sole traders and landlords to stay on top of their tax affairs and help ensure everyone pays the right amount of tax.

“Spreading your tax admin throughout the year means avoiding that last-minute scramble to complete a tax return every January. Go to GOV.UK and start preparing today.”

The government has also 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.

The post Landlords spared late filing fines in first year of Making Tax Digital appeared first on Property118.

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