HMRC gives landlords more time to comply with new ‘making tax digital’ rules

The government has given landlords and other businesses a further year to prepare for HMRC’s Making Tax ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - HMRC gives landlords more time to comply with new ‘making tax digital’ rules | LandlordZONE.

HMRC gives landlords more time to comply with new ‘making tax digital’ rules

The government has given landlords and other businesses a further year to prepare for HMRC’s Making Tax Digital (MTD) initiative.

MTD was to come in for landlords who fill in self-assessment forms with a business or personal income over £10,000 a year in the tax year beginning April 2023, but this has now been extended by a year.

HMRC says it has made the decision following feedback from property portfolio landlord and other business operators and their representatives about the additional challenges caused by the pandemic.

Forming part of the government’s ambition to become one of the most digitally advanced tax authorities in the world, MTD is the first phase of HMRC’s move towards a ‘modern, digital tax service fit for the 21st century’.

More time

This means affected landlords will now have more time prepare, while the government says the delay gives it more time to assess an ongoing MTD pilot and tweak the system.

Once it does come in, the new rules will require landlords to store details of their affairs digitally and file their tax returns using specialist software on a more regular basis.

Lucy Frazer MP, Financial Secretary to the Treasury (pictured), says: “The digital tax system we are building will be more efficient, make it easier for customers to get tax right, and bring wider benefits in increased productivity.

“But we recognise that, as we emerge from the pandemic, it’s critical that everyone has enough time to prepare for the change, which is why we’re giving people an extra year to do so.”

MTD has not been without controversy. was forced to clarify that the new rules would not make it more expensive for landlords to post their tax returns after the NRLA and its counterpart in Scotland, the SAL, flagged up its concerns about the ‘potential costs and accuracy of returns’.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - HMRC gives landlords more time to comply with new ‘making tax digital’ rules | LandlordZONE.

Source : Landlord Zone More   

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OPINION: It’s time for Shelter to stop painting all landlords as ‘abusive’ and ‘flouting the law’

Private sector landlords are growing increasingly exasperated by the combative tone of Shelter’s campaigning in recent months. ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - OPINION: It’s time for Shelter to stop painting all landlords as ‘abusive’ and ‘flouting the law’ | LandlordZONE.

OPINION: It’s time for Shelter to stop painting all landlords as ‘abusive’ and ‘flouting the law’

Private sector landlords are growing increasingly exasperated by the combative tone of Shelter’s campaigning in recent months.

Earlier this month the organisation hit attack-dog mode publishing research that claimed 45% of landlords have been involved in ‘illegal’ activity ranging from administrative errors to physical violence.

Shelter is singing the same old song; private landlords are bad and irresponsible.

The only difference between it and successive governments is that Ministers want to move tenants from the private rented sector (PRS) into the build-to-rent market, while Shelter believes the answer is to build more affordable social housing.

But otherwise, the government and Shelter are closely linked, much more so than most landlords probably realise.

Founded in 1966 to be a voice for tenants, Shelter has grown into an influential quasi government department – the housing ministry has effectively outsourced its PRS advice and support functions to the organisation.

Also, Shelter has been a heavy influence on successive government’s housing policies including mandatory deposit protection schemes, the lettings fees ban, the ‘No DSS’ ban, the fitness for human habitation legislation as well as the successive Covid evictions bans.

Big money

It’s also a big business; Shelter’s most recent results reveal donations of £37m, government and local government grants and contracts worth £18.3m which, together with other income, adds up to a turnover of £67.4m.

It also holds the enviable position of being both funded by the public purse via its social welfare contracts, while at the same time being an influential lobbyer of the Government.

With such power comes responsibility. But Shelter has recently taken the lead in bashing landlords, as its most recent campaign demonstrates, without much evidence of this responsibility.

Landlords are painted as criminals, exploiters, lazy and running filthy properties while preying on vulnerable tenants even though the most recent revealed that 81.8% of tenants it canvassed were ‘very’ or ‘fairly’ happy with their landlord, or didn’t hold an opinion one way or the other.

Shocking facts

Of course, to get cut through and grab the headlines requires shocking facts, but given Shelter’s access to the public purse, it seems unfair to many landlords that tax payer funds are spent on campaigns that paint the whole PRS as a slum landlord cesspit.

As Kate Faulkner, who has a leading role in current government efforts to work with the industry to improve the housing market, tells me, given the millions they have spent influencing changes within the private rented sector, “they are now as responsible and accountable for the state of the PRS as government, landlords and agents”.

“Their latest survey has the view that ‘nothing has changed’ so neither them, the government, landlords or agents have made the PRS a better place for tenants over the years.

“I don’t think that is true. There is a legally and safely-let PRS that is much better thanks to Shelter, landlords, agents and government.

Unlawfully let

“But we all accept there is an unlawfully-let sector, which mostly affects vulnerable people. These are typically people that are eligible for and should be living in social housing. 

“Social housing is the responsibility of government and Shelter. The PRS has been ‘dragged’ into this sector, as have B&Bs, and they are both being squeezed to meet social need, despite little regulation in both sectors.

“This is where a lot of misery is being caused, but landlords and letting agents can’t do much to influence this.”

It would be good if Shelter were to recognise this going forward. LandlordZONE has reached out to its CEO to see if she would discuss taking a more conciliatory approach to private landlords and reflect the reality on the ground. But so far to no avail.

Nigel Lewis is editor of LandlordZONE.

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - OPINION: It’s time for Shelter to stop painting all landlords as ‘abusive’ and ‘flouting the law’ | LandlordZONE.

Source : Landlord Zone More   

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