Mar

Government says support in place for landlords ahead of Making Tax Digital

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Government says support in place for landlords ahead of Making Tax Digital

The government has claimed it is offering support to landlords ahead of the introduction of Making Tax Digital, despite a slow uptake in registrations.

As previously reported by Property118, with less than a month to go until Making Tax Digital comes into force, only around 5% of taxpayers, including landlords, have signed up.

Under the controversial scheme, from April 2026, landlords earning more than £50,000 will be required to keep digital records and submit quarterly updates to HM Revenue & Customs using authorised MTD-compliant software.

MTD will help landlords

In a written question, Labour MP Tanmanjeet Singh Dhesi asked: “What recent assessment has the government made of the adequacy of HMRC support available for (a) sole traders and (b) landlords to help ensure they can meet the Making Tax Digital deadline.”

Labour MP Dan Tomlinson said the government was taking steps to help landlords meet the April deadline.

He said: “Making Tax Digital 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 make annual tax returns easier.

“The government is undertaking a range of activities to ensure those needing to use Making Tax Digital 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 Making Tax Digital-compatible products are available, to suit different needs and budgets. Free options will support those with the simplest affairs.”

He adds: “Supporting its introduction is a dedicated team of fully-trained Making Tax Digital advisors. From April 2026, new options will be available on HMRC’s Self-Assessment and Agent helplines tailored to the needs of Making Tax Digital users.

“Further support will continue to be offered through webinars, industry engagement and marketing activities targeted to reach those affected by the changes.”

No advantage to MTD

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, 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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