Landlords present a new frontier for accountants when MTD for Income Tax begins in April 2024.
After all, many landlords may not even be aware rental income is taxed alongside their other income, so may not realise that MTD for Income Tax could apply to them.
When they learn the details, they will almost certainly seek professional help.
This might be especially true for landlords with a single property that they have inherited.
Making Tax Digital for landlords
But all this must change when MTD for Income Tax is introduced.
At that point, anybody receiving more than £10,000 from rental income must follow the MTD rules. It doesn’t matter if they’re considered a professional landlord in the eyes of HMRC, or not (that is, whether or not they pay Class 2 National Insurance contributions doesn’t matter).
Furnished holiday lettings (FHL), commercial property and non-UK properties are included within the scope of MTD too.
For accountants that want to get ahead of the game, we have a free e-book that provides all you need to know: MTD for Income Tax: Working with landlord clients.
It provides the following:
- A basic explanation of the rules of MTD for Income Tax, with a particular focus on landlords.
- A dig down into specifics of MTD for Income Tax and how it’s likely to affect landlords. Topics covered include how landlords will work out their income for MTD, what their basis period will be, what information they have to provide to HMRC, whether the pilot scheme is a good choice for landlords, how foreign property income is handled, how to deal with shared ownership, and much more.
- A guide to how MTD for Income Tax provides opportunities for your practice – and how you can take advantage of them, including a step-by-step guide that you can implement right now.
Preparing a path for new clients
Accountants need to start preparing for MTD for Income Tax and advising their landlord clients today. April 2024 might sound like some time away but the reality is that it’ll be here in no time.
Our free e-book is the very best place to begin.
We all know from MTD for VAT back in April 2019 that clients were confused and nervous. They turned to their accountants for help – but while this created more revenue, it also consumed more time.
This situation will be multiplied several fold when landlords become aware of their legal requirements under MTD for Income Tax.
Yet if your practice is ready and prepared, you’ll provide the very best welcome and path forward for these clients. You’ll be able to assist and even have new service offerings in ways that your competitors won’t.
So, what are you waiting for? Download our free e-book and get started now.
MTD for Income Tax: Working with landlord clients
Discover how you can help your landlord clients prepare for Making Tax Digital for Income Tax and learn how to maximise opportunities for your practice.
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