What HMRC Doesn’t Tell You About MTD (But We Will) Making Tax Digital for landlords isn’t about tax. Not really. It’s about keeping records, and how you handle those will either make MTD painless… or a quarterly panic. Here’s what HMRC doesn’t make very clear: You’ll need to track every single rental transaction regularly, in detail, and in a format that’s compatible with their systems. That’s where most landlords are going to trip up, especially those relying on spreadsheets or “shoebox accounting”. Here’s what to get in order now before the deadline to avoid the stress: * Keep digital copies of invoices and receipts. * Log income and expenses as they happen, not months later. * Ensure all property income is clearly separated (no blurring personal vs. rental). * Categorise consistently, so HMRC doesn’t reject your data down the line. Even if you're already using MTD software like PaTMa, it's worth doing a quick check of your current setup. Are you recording things often enough? Do you have gaps that could cause issues in a quarterly report? Many landlords we speak to think the tricky bit is submitting to HMRC, but if you’re already using PaTMa that part is taken care of for you. The real challenge is having clean, consistent records when the deadline rolls around. Or, finding and getting used to MTD compatible software if you’re not already using one. MTD - Making Tax Digital Software for UK Landlords https://www.patma.co.uk/property-manager/solutions/mtd-making-tax-digital/ Simon and the PaTMa team

Posted by Pete England at 2025-05-16 06:58:25 UTC