Landlords will have to use the new Making Tax Digital for Income Tax Self-Assessment system, the Chancellor has confirmed.

In the briefing notes published alongside her Spring Statement today, Rachel Reeves confirmed the Government is continuing the rollout of the service for sole traders and landlords.

It also confirmed the qualifying income, which is more than £20,000 from April 2028.  

Making Tax Digital

It said: “Making Tax Digital places UK businesses on a digital footing, prepares them for the future, gives them the tools they need to succeed in an increasingly competitive landscape, and ensures they can benefit from a modern, digital service when managing their tax affairs.

“The Government will continue to explore how it can best bring the benefits of digitalisation to more of the around four million taxpayers who have income below the £20,000 threshold.”

It went on to say that late payment penalties for Value Added Tax taxpayers and for income tax self assessment would increase as they join Making Tax Digital from April 2025 onwards.

It said this was to “encourage taxpayers to pay on time”.

Last year, LandlordZONE reported that landlords will have to fork out an extra £460 to use the new software.

On top of this, those earning between £30,000 and £50,000 will have to pay a one-off £350 “transitional cost”.

Landlords in the £50,000-plus threshold would have to pay a transitional cost of £285 and an annual additional cost of £115.

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