Under the HMRC’s new digital self-assessment rollout, Making Tax Digital, people will face having to lodge as much as 10 tax returns.
Under the HMRC’s new digital self-assessment rollout, Making Tax Digital, people will face having to lodge as much as 10 tax returns.(Image: )
HMRC has a new rule for some UK households who have to file TEN tax returns. Under the HMRC’s new digital self-assessment rollout, Making Tax Digital, people will face having to lodge as much as 10 tax returns.
The rules, from April, apply to those landlords who make more than £50,000. HMRC requires four quarterly submissions as well as a year-end adjustment and a final declaration.
Landlords face their first submission on August 7, and then updates each and every quarter, with the next on November 7. On top of these four returns, landlords still need to file two more years of taxes on the old system.
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The deadline for the 2024-25 financial year is on January 31 this year. The 2025-26 financial year will need to be filed by January 31 2027, a year later.
Those who have set up buy-to-let limited companies must also file corporate tax returns once a year – meaning they have two extra returns to file between now and the end of 2027, according to warnings.
Chris Norris, of the National Residential Landlords Association, said: “Ignorance is not a defence, but I think this is going to be confusing for people.
“I can see some people quite innocently doubling up or missing things. Several submissions when you normally do one is very confusing.”
Mr Norris added: “If you’re not very careful this year, I can see people getting into a bit of a mess, twisting themselves into knots. We’ll certainly be encouraging people to finalise their self assessment earlier than they would otherwise.”
An HMRC spokesperson said: “Making Tax Digital customers will need to send us simple quarterly summaries of income and expenditure using compatible software. This can make the annual tax return less burdensome as the information will be pre-populated on their return. “This means customers will gain a better view of the health of their business and tax liability.
“Quarterly updates are not tax returns – they are simple summaries of your income and expenses from sole trading and property, with no need for adjustments. MTD software will do much of the work.”
