Landlord News: Digital Accounting to be phased-in from April 2019
On 31 January 2017 it was announced that HMRC’s Digital Accounting plans are to go ahead in April 2019, starting with an obligation for quarterly updating to HMRC for Buy-To Let Landlords and Sole Traders
In general, most taxpayers, whatever their source(s) of income, will have a unique HMRC digital account.
It is envisaged that all relevant taxpayers will be required to complete quarterly, and final annual, uploads to their HMRC account.
Buy-To-Let Landlords and Sole Traders should start to plan how the relevant information will be available to be able to report quarterly, and within one month, rather than once a year with a ten month lead-time. Currently, accounts for the year ended 31 March 2017, for example, need not be filed until 31 January 2018.
The uploads will need to be processed through HMRC compliant software.
It is essential that those involved in the requirements starting in April 2019 plan well ahead as there will be fines and penalties for late filing.
The requirements of the reporting will differ according to the turnover and complexity of each business.
Although not all the rules and exemptions have yet been finalised by HMRC, we have enough information to be able to discuss the solution to each client’s business circumstances, which can be reviewed once HMRC publishes the new legislation. Please note that HMRC are not proposing to advertise these changes to any great extent so please take this Memorandum as notice of the new rules.
If you are a Landlord or a Sole Trader, please contact us to discuss what needs to be put into operation.
This article was written for base by GC ACCOUNTANTS- Chartered Certified Accountants & Registered Auditors (our recommended accountancy firm). You can visit their website here
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this memorandum. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.