Making Tax Digital for Landlords 2025: Key Changes for the New Year
It is the new year, and landlords in the UK have more tax responsibilities than decorating and buying food. Many are concerned about the new year’s tax changes.
Making Tax Digital for Landlords 2025 will bring new reports with property income exceeding £50,000 annually in the new year. This new tax reform is designed to simplify the tax process, which requires proper adaptability.
As a landlord, it’s crucial to understand the implications of Making Tax Digital in 2025. This festive season presents a prime opportunity to plan your finances and make sound investment decisions, ensuring you’re well-prepared for the changes ahead.
Use the links below to jump directly to the section you want.
- Making Tax Digital for Landlords: Latest Update for 2025
- Which individuals are affected by MTD?
- What Landlords Will Need to Do?
- Key Dates to Remember About Tax Submission/a>
- How Appointing Lockhart Amin Accountants Can Help You?/a>
- What’s Next For Landlord’s?/a>
- What about Stamp Duty Changes?/a>
- Lockhart Amin Accountants Your Best Partner of 2025/a>
Making Tax Digital for Landlords 2025: Latest Update
The UK government took the initiative to transform the UK tax system. The aim behind the change was
- To reduce the errors in tax planning
- To ease the tax process for businesses and individuals
- To show real-time visibility of tax obligations through digital systems and to send updates to HMRC.
Initially, for VAT-registered businesses, Making Tax Digital will extend to landlords in 2025, making a significant shift for those with good property portfolios.
Which individuals are affected by MTD?
Landlords with a gross property income exceeding £50,000 annually must align the requirements of MTD from April 2025.
This threshold applies to every landlord, even those earning little income, as MTD applies before any expenses are subtracted. Thus, every landlord will be included in MTD, not those with a significant property portfolio.
Making taxes digital will affect contractors, small business owners, sole traders, and landlords. Every VAT-registered business should comply with MTD for VAT. This also applies to non-UK businesses registered for UK VAT trusts and charities.
What Landlords Will Need to Do?
Landlords who are subjected to MTD will need to maintain digital records of their property portfolios. Using advanced software to record your income and allowable expenses will help you become MTD compliant. With Lockhart Amin Accountants, we use MTD-approved online software to ensure accuracy.
Key Dates to Remember About Tax Submission
Here are the following time durations you should remember about tax submissions.
| April 2025 | Quarterly Deadlines |
| Making Tax Digital for Income Tax Self-assessment becomes mandatory for landlords earning over £50k annually. | They must submit a report every three months within the accurate deadlines HMRC set for the tax year. |
Getting Ready Landlords for MTD
Christmas and year-end are often quieter periods for rental activity. That means it is the best time to assess your accessibility for MTD as we head into the new year.
You should take the following steps to prepare for the landlords’ MTD.
| Take a Lookback on 2024 Financial Records | Before the new year begins, you must review your previous income expenses for 2024. Your aligned documents will ease your transition to digital reporting, allowing you to work with an accountant and prepare digital tax reports. |
| Analyse your income | It is essential to know the gross property income, which shouldn’t exceed £50,000 annually. This includes income from residential, commercial, and holiday lets. |
| Digitise Your Records | Don’t rely on spreadsheets; switch to digital tools to keep an accurate time record. MTD require accuracy, so invest in software that aligns with HMRC requirements. |
| Decoding Allowable Expenses | Under MTD, landlords must report allowable expenses accurately.
Deductible expenses include
|
| Stay Up to Date | Tax regulations are advancing. Stay informed about the updates by subscribing to HMRC. |
| Seek Professional Assistance | Appointing a Lockhart Amin accountant to help you identify gaps in your compliance strategy. |
How Appointing Lockhart Amin Accountants Can Help You?
Lockhart Amin Accountants can help you identify gaps in your compliance strategy. Our dedicated advisors will assist you with the following.
- Structuring your income tax efficiently.
- Recognise all allowable expenses and deductions.
- Your transformation from manual to MTD-compatible processes
- Lookout your MTD requirements and software selection
- Staying compliant with the rules.
- Peace of mind knowing everything is in capable hands.
What’s Next For Landlord’s?
Other than MTD, landlords should know about additional regulatory changes that can impact obligations and property investments. If you choose an accountant for your work and stay proactive, you will succeed in the competitive market.
What should landlords do to improve their EPC Ratings?
- You have to prepare for E to G. You can do this through.
- Replace your light bulbs with LED light bulbs.
- Insulate your home, including walls and roof
- Update the windows with double and triple-glazing
- Install an energy saver boiler
What about Stamp Duty Changes?
January is a popular month for landlords to buy property and learn about market trends. If you are in the market for a new property, you should remember the upcoming changes to stamp duty and how they can affect you.
Stamp duty Land Tax should be paid to HMRC when purchasing land in England or Northern Ireland. Stamp Duty will change on 31st March 2025 for standard residential freehold property where a buyer is a UK resident, and the main property will be replaced. The new changes are
0% up to £125000
2% above £125000 and upto £250000
5% above £250000 and upto £925000
10% above £925000 and upto £1500000
12%above £1500000
So, be aware of the latest tax changes and understand how they impact savings and plans. This is imperative, specifically for buy-to-let properties.
Lockhart Amin Accountants: Your Best Partner for Making Tax Digital for Landlords in 2025
Landlords should be tax-compliant this new year as we hit the Christmas/ New Year Period. Making tax digital will change how rental income is reported, but the right strategies can make the transition seamless.
If you have decided to buy the property, prepare your MTD records. At Lockhart Amin Accountants, we closely examine every tax change to maximise your financial success.