New tax rules for Leicester buy-to-let landlords from 2024
At the Leicester Property Blog, we wanted to make you aware of some important changes that are coming into effect from 6 April 2024.
The UK Government is introducing Making Tax Digital (MTD) for Income Tax, which will affect how landlords report their income tax to HMRC.
Individual landlords must submit their income tax returns through MTD-compatible software, while those with a property portfolio in a limited company won’t be affected until 2026.
Leicester Landlords with an estimated income of £10,000 or more from their properties must file their tax returns quarterly, detailing their income and expenses digitally.
This means there will be four extra filings a year, with a fifth filing required to collate all the information.
The new regulations will also introduce a penalty point system to encourage compliance with submission dates.
The points system will replace the current fine structure, with an automatic £200 penalty applied once a certain number of points have been reached.
Exemptions are available for those who cannot cope with digital tax returns for genuine reasons. Landlords wishing to seek an exemption must apply through the HMRC website, and each case will be considered individually.
We understand this may be confusing and overwhelming for some Leicester landlords.
That’s why we are here to help.
If you have any questions or concerns about MTD for Income Tax, please don’t hesitate to contact us me.
We are happy to assist you and guide you through the process. And if we don’t know the answer, we know someone who will!
Remember, these changes will be in effect from 6 April 2024, so it’s essential to start preparing for them now. By getting ahead of the game, you can ensure that your tax returns are submitted on time and avoid penalties.