Tax Changes

On the 1st April 2022 as part of the government’s plans to make HMRC “one of the most digitally advanced tax administrations in the world”, all agencies or landlords registered for VAT will need to sign up to Making Tax Digital. Agents and landlord must keep digital VAT records and use software packages to submit their VAT returns from April 2022 onwards.

Further down the line, in April 2024 this digitalisation will extend to Income Tax Self Assessments (UK), meaning anyone registered for Income Tax Self Assessments and with an annual business or property income above £10,000, income and expenses will need to be submitted digitally four times a year, and allowances and adjustments at least once a year.

Tim Walford-Fitzgerald, partner at UK accountancy firm HW Fisher, predicts ‘HMRC may get more aggressive with landlords who have missed some of the changes in rules in recent years. Now that the residential mortgage relief restriction is in full force, we expect less tolerance for misreporting, especially in light of the losses that some landlords may have from recent defaults.’

‘Capital gains tax for residential property transactions can now be paid within 60 days, following calls for the 30-day payment period to be doubled due to unsuspected homebuyers being hit with fines. We expect the recent extension of the disposal reporting deadline to result in greater enforcement against those who have failed to meet their reporting obligations.’

Source; Goodlord, Property Industry Eye