Making Tax digital help

Landlord Discussion
1

I have just two rental properties , had them both 30 years.

I have submitted paper tax returns till now traditional paper accounting which has been fine and easy to do , but now I feel very stressed as I have never used any accounting software and doubt I can despite having had a computer for 34 years.

I have been reading your comments about the software options but now feel even more anxious about things.

I will give notice to one tenant soon to sell the property because of this new accounting system .

The other property I will have huge capital gains tax bill and when I die the tax man takes another huge amount .

Does anybody else feel as miserable as me and worried about this MTD ?

Can anybody give advice to help me , apart from selling both properties ?

Thank you in advance.

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Here’s the advice: get an accountant.

They won’t only do the MTD for you but will also prevent you from having to sell someone’s home and will be able to advise you about your CGT and death taxes.

Yes, an accountant costs money, but they typically save you far more time, effort and money than you spend hiring them.

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3

Perfect solution.

As you only have two properties, just check that the income from that is over £50k pa. If not, you do not need to do MTD yet. If it is over £50k, then you have about 8 days to submit the first MTD return, so you are running late.

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I think the OP is thinking about post April 2027 when, like me, they’ll finally fall within the clutches of MTD.

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@majrit

Dont feel miserable about mtd.

When you first rented your properties were you an expert LL or did you need either to learn stuff or find
experts (plumbers electrician etc) to do stuff ?

MTD is simply using a computer to supply hmrc with the same information you currently supply by paper, and quarterly. If you cant do it get an expert ie an accountant.

There are other reasons to be selling up (RRA making eviction harder, high interest rates, poorer prospect for properties prices) but MTD on its own isn’t a reason to sell up

Good luck

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Good morning,

Thank you all for your kind reply’s .

So property income for 2026/2027 was £35378.00 about ,minus expenses about £6261.00 .

I am computer literate and do banking etc online (34 years ) .. why is there not a simple software that one can use ?

Yes I can use an accountant , I would need to find one .

Going on to selling properties , I got rid of some about 9 years ago so I am left with these two.

Tax is bad news for me as a Nordic person , I have no children ( divorced ) and as a Nordic born, I have lived here since I was 18 , paid tax nearly 60 years here, a British citizen , I can’t leave money to anybody living at this Nordic country because UK does not have a Tax an agreement with that country !

If I left £325000 , which I could leave tax free in this country , to my sister and her children but because no tax has been paid on it in UK that Nordic country will tax it! So I can’t leave anything to her or children, socialist country! They have some tax concessions if I had paid tax here on that some or any other sum but not on the £325000 .

You can only leave about £3500.00 every 3 years without paying tax on it to that country , thats is why would I pay tax earned in here to that country to tax ?

I have never made a will as its very difficult . I know I should , I can leave 10% to charities reducing the Inheritance tax to 36% , happy days!

I know about Inheritance Tax in this country , I have read a lot of articles about tax.

So , I have had my tradesmen before I bought these properties , they have worked on different extensions , refurbishments building projects for me , I am knowledgeable about recent changes to renters rights etc.. always looked after my tenants well , one tenant who may now loose his home has been a tenant 13 years, low rent to keep him !

The other property is in central London and tenants leave next May after 3 years ( foreign, working here).

So its a bad tax situation for me now.

My next door neighbour’s sister ‘s son is getting nothing because he never comes to see her , she has left her house and money to Monkeys ( monkey world ) . Now there is an idea !

I have been unwise regarding Inheritance tax planning but as you can see its not so simple for me.

Whilst recently having my car 30 year old car tyre fitted I met a very smug accountant boasting to other people how he knows how to save on Inheritance tax , yes making himself a packet in process , setting up a trust .

He put me off accountants .

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:grin: it’s their actual job to do this!

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take that story to an accountant and see what they advise. First consultation is usually free so line up meetings with a few.

Choose the one that is least smug.

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Thank you , I will have to , there are no “ loopholes” now for Inheritance tax planning but, its too late for me anyway.

In reply to one of the other reply’s , “Renters Right Act “does not stop you selling your property.

I sent in post 1 May to both tenants the document , both have confirmed having received the documents in email, saved posts.

You just have to have your deposits protected, safety certificates in order and correct notices in place , which are and have always been .

If my 13 year tenant wants to buy the flat , he is welcome to , I would help with the deposit , his rent would cover the mortgage of course I would be taxed on the gift .

Taxed if I dare to cry soon !

In Westminster the council now wants all private landlords to register , “ a little “ invoice for nearly £1000 for me plus my agent fee £300 to register on my behalf !

Metastreet registering is very long and difficult , paid the invoice to my agent I think 8 months ago , heard nothing so far. Other landlords found the registering too difficult too, they used agents.

Many thanks.

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there was another thread recently about how this is virtually impossible to do in the way you are imagining.

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It’s hard being wealthy isn’t it!

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I don’t live a wealthy life , no holiday for 40 years , drive 30 year old car !

I live very ordinary life .

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13

Hi

I have recently joined taxltd which is an online company for £99 a year you can do the relevant quarterly returns and end of year. It is very easy to use the figures from a spreadsheet and they take you through step by step.

Good luck !

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Hi Clare ,

Thank you.

Sounds like I can learn to do it.

How do I find this company ?

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Thank you Clare, I found it, will try it.

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16

Morning. Thanks for putting the figures up, it makes this much easier to answer.

£35,378 gross with about £6,261 of expenses puts you at roughly £29,100 net. That’s the bit I’d want you to see clearly: the test is the £35,378, not the £29,100. HMRC looks at income before expenses come off. So you’re just over the £30,000 line on the figure that counts, and just under it on the figure most people assume counts. That puts you in the April 2027 group.

It’s an easy trap and you’re far from the first to fall into it. Worth double checking whether either property is in joint names, because if so only your share counts and that could change the answer.

On why there isn’t simple software: you’ve put your finger on the real problem. Most of it was built for businesses that already have someone doing the books, so it assumes you want a dashboard and a chart of accounts. For someone with two properties and a bank account they already understand, that’s a lot of machinery for a small job. There are simpler things appearing now that the deadlines are biting, and you’ve got about nineteen months, so there’s no need to pick one this month.

Being computer literate genuinely helps here. This isn’t a technical problem, it’s a habit one. Recording things as they happen rather than in a heap each January is the whole change.

On the inheritance side, I’m going to be less use to you. Cross-border estates with a treaty gap are a specialist area and anything I said on a forum would be half an answer at best. But I’d separate the two things in your mind. The will is worth doing regardless and it’s a smaller job than it feels like. The tax planning around it is a second conversation, with someone who does cross-border work specifically.

And for what it’s worth, don’t judge the profession by a bloke boasting about trusts in a tyre bay. Most of us are duller than that and it’s usually a good sign.

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Thank you for your kind words.

I will test some of the MTD software , they are free to test .

All 3 properties are in my name including my home .

As to Inheritance tax to Nordic country , I looked on their tax website, its is in english.

Looks simple basically if tax has been deducted in this country THEY give concessions!

So here first £325000 tax free , rest taxed at 40% or if 10% given to charities 36% tax applies.

The said country tax website does not say what concession they give.

I am not prepared to give the said country a bean of money earned in this country.

I do not think using a special person in working out inheritance tax between the two countries are needed , there is no agreement between these two countries as far as inheritance tax is concerned.

A dull accountant is easily able to check this out !

The tax page looks simple and questions regarding inheritance tax can be asked directly by email.

I personally do not want to give my name or address to the tax office of this country .

Nil rate band does not apply to me either , as I have no children or partner.

I want to make a will so the “will chasers “don’t have a chance of giving my money to the Nordic country !

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Before you buy any software or sell anything, check whether you are actually in it yet.

You mentioned property income around £35,378. Making Tax Digital for Income Tax applies for 2026/27 only if your qualifying income was over £50,000 on your 2024/25 tax return, and HMRC looks at income before expenses. On those figures you are under it, so you are not in for this tax year. The £30,000 band starts April 2027, which gives you a full year to learn the software at your own pace rather than in a panic.

One thing worth knowing about the September letters: HMRC is only auto-signing-up people whose 2024/25 return showed over £50,000. If one arrives for you, that is worth querying, not obeying.

Nothing here needs solving this month.

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Thank you for your reply.

My post today , not sure where it is .

Renters Right Act ,we now have to register as private landlords on 1 October , I already had to pay £1300 to register as a private landlord with a council , just under £1000 plus £300 to agent due to the fact that it is long winded and difficult to form to fill ( last year) , I still have not got the license , I got a letter from the council to sign and to certify details about the property that my agent filled in , lord help me if I did not get it correct, I am waiting to hear if they want more information. I was warned that incorrect information , they might fine me, happy days !

I have decided to sell both properties now , no more stress.

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