Tax threshold changes to affect majority of landlords by 2028
Original Article Summary
Lower income thresholds will bring significantly more landlords into HMRC's Making Tax Digital for Income Tax regime over the next two years. The threshold will fall to £30,000 from April 2027 before reducing again to £20,000 from April 2028, bringing the majority of landlords within scope of digital reporting requirements. The post Tax threshold changes to affect majority of landlords by 2028 appeared first on PropertyWire.
Investor Analysis
Making Tax Digital for Income Tax thresholds will fall to £30,000 in April 2027 and £20,000 in April 2028, drawing the majority of UK landlords into mandatory quarterly digital reporting and replacing traditional annual self-assessment. Landlords who fail to prepare risk £200 penalties per missed submission from 2027/28 onwards.
Investor Relevance
Most UK residential landlords earning rental income above £20,000 will face compulsory quarterly HMRC digital reporting within three years, requiring new software, recordkeeping processes, and potentially professional support — all of which increase operating costs and administrative complexity for landlords of all portfolio sizes.
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