By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


HMRC gives landlords deadline for digital tax payments

Landlords who make tax returns on their investment properties via VAT-registered companies must sign up to the HMRC’s Making Tax Digital initiative by April 1.

Making Tax Digital for VAT is part of the Revenue’s overall digitalisation programme for UK tax payments. 

As of last month, some 1.6m taxpayers had joined Making Tax Digital for VAT with more than 11m returns submitted. Around a third of VAT-registered businesses with taxable turnover below £85,000 have voluntarily signed up to Making Tax Digital for VAT ahead of April 2022.


Since April 2019, businesses with a taxable turnover above £85,000 have already been required to follow Making Tax Digital, keeping digital records and filing VAT returns using Making Tax Digital compatible software.

In July 2020, it was announced that all VAT-registered businesses must file digitally through Making Tax Digital from April 2022, regardless of turnover. 

HMRC is now reminding businesses below the £85,000 threshold of the steps which they need to take to be ready.



Joanna Rowland, HMRC’s director general for transformation, says: “Making Tax Digital is fundamental to the delivery of a trusted and modern tax system, making it easier for businesses to get their tax right and supporting the UK to go digital.

“By signing up for Making Tax Digital, we expect most businesses to experience long-term benefits, including reduced errors and time saved in managing their tax affairs.

“We encourage businesses to explore digital record-keeping for their VAT affairs and use this time to choose the right software to support their business needs.”

HMRC has also just announced that it will waive late filing and late payment penalties for self-assessment taxpayers for one month due to Covid pressures, giving them until 28th February to complete their 2020 to 2021 tax return and pay any tax.

She is advising landlords to visit www.gov.uk and choose their Making Tax Digital-compatable software no less than seven days before their first Making Tax Digital VAT return deadline date.

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • icon

    Remember that this is the government that helped corporate interests in the residential lettings sector by stopping ordinary folks running a small rentals business from setting their finance costs against tax. So it's reasonable to ask who's really benefitting from forcing small-scale landlords to report to HMRC five times a year rather than the current once?

    I think there are two obvious beneficiaries.

    One is the providers of accounting software who are going to make a lot of money out of small landlords being obliged by law to use third-party products to deal with HMRC. Let's just say it would be interesting to know about the personal and financial ties between Tory MPs and companies like SAGE who will be profiting mightily from this legal requirement for millions of taxpayers to purchase a commercial product.

    The other likely beneficiary is the government itself. After all, if you believe the requirement to submit four quarterly reports plus a final statement each year won't also quickly lead on to a requirement to pay advance tax on account to HMRC every three months then I have a bridge I want to sell you. For small landlords this is going to be very tough because big-ticket expenditures in particular (eg. new boiler, repairs to roof) are "lumpy" and having had to hand over accumulated profits several times in-year could easily leave insufficient cash in the bank to fund them. So I predict growing business problems for small operators while the state sits on their money which it has forced them to hand over as a downpayment on the eventual tax liability.

    Incidentally I also foresee imposing much more frequent digital reporting on millions of sole traders and small landlords leading to administrative chaos. If you seriously believe HMRC, which cannot cope adequately with the inquiries and glitches generated by a single reporting and payment point each year, is going to be able to handle the massive increase in interactions with taxpayers who are suddenly forced to deal with the tax authorities five times a year, then I have a splendid second bridge available too.

  • George Dawes

    All done accidentally on purpose to suit their long term agenda

  • icon

    Yes George, follow the money, their were massive mortage frauds under Blair and he is now very rich. Simliarily Cameron and Osborne became very wealthy and although Camerons wife is very rich he has been going around the world floggging dodgy Australian finance. Further Royalty has been able to secure a saudi businesman a knighthood andf British Nationally. Apparently a million punds donation to an apprpriate charity is the going rate.


Please login to comment

MovePal MovePal MovePal
sign up