Feb

Landlords face fines for not updating contact details under Making Tax Digital

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Landlords face fines for not updating contact details under Making Tax Digital

The government could impose a £1,000 fine on landlords who fail to update their digital contact details under Making Tax Digital (MTD).

During a government debate, Shadow Economic Secretary Mark Garnier criticised the penalty, warning it could have a significant impact on vulnerable taxpayers.

Under the scheme, which came into effect in April, landlords earning over £50,000 are required to maintain digital records and submit quarterly updates to HMRC using authorised MTD-compliant software.

Unprecedented and disproportionate

During the debate on the Finance Bill, Economic Secretary to the Treasury Lucy Rigby said that under the Making Tax Digital for Income Tax programme, HMRC will require customers to provide an email address or mobile phone number and keep those details up to date.

However, Mr Garnier raised concerns that, while this may be reasonable, taxpayers could face a £1,000 fine for failing to update their digital records.

He said: “It’s a perfectly reasonable request to keep details updated, but to enforce it, people can be subject to financial penalties of up to £1,000. As the Association of Taxation Technicians has said, the proposed £1,000 penalty is “unprecedented and disproportionate”. Much more importantly, there is no comparable HMRC penalty for failing to update a postal address or traditional form of contact.

“Are the government not going a bit too far? I remind them that this is about regular taxpayers, and this penalty could catch out people who are more vulnerable or less financially literate. Can the Minister commit to reviewing whether this £1,000 fine is too high and, indeed, whether we should be bringing it in?

Landlords won’t be forced into MTD

Ms Rigby claimed the issue will be kept under review and explained that older customers are more likely to be digitally excluded under MTD. She said the government will support safeguards, allowing those groups to continue accessing paper communications.

The government confirmed in its impact assessment that landlords won’t be forced into MTD if they cannot go digital, and that landlords can write to HMRC or call the department to be exempted from the scheme.

The government has also confirmed landlords won’t face fines for filing late in the first 12 months of the scheme.

The post Landlords face fines for not updating contact details under Making Tax Digital appeared first on Property118.

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