27 Jul

Landlords welcome delayed digital tax system

Landlords welcome delayed digital tax system

Many landlords have welcomed a delay in introducing a new system that will mean many buy-to-let investors will have to process their taxes online.

The Marking Tax Digital requirements are being delayed by 12 months, which means small business and landlords below the VAT threshold will have extra time before being forced to switch to the digital system. 

Those earning over £85,000 will have to keep digital records from 2019, but only for VAT purposes.

Financial Secretary to the Treasury, Mel Stride, explained the decision to make the proposals voluntary for the smallest operations should benefit within the country's property industry.

"This means that businesses and landlords with a turnover below the VAT threshold will be able to choose when to move to the new digital system," said Mr Stride.

He added: "As VAT already requires quarterly returns, no business will need to provide information to HMRC more regularly during this initial phase than they do now. All businesses and landlords will have at least two years to adapt to the changes before being asked to keep digital records for other taxes."ADNFCR-1222-ID-801838188-ADNFCR

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