Updating post from Reddit.
Hi, have we already had a post and answer in this subject? Sorry if I’ve missed it.
HMRC (bless ‘em)… want us to be pet if making tax digital and reporting in a quarterly basis from April ‘26. Apparently my usual spreadsheet method isn’t going to cut the mustard any longer… so another cost (thanks for that 👍🏻). So some kind of accounting software is required - I’ve had a little look around. Any recommendations? Anyone started using anything decent? Reasonably priced?
Thanks in advance.
As a low-tech solution, you can use bridging software from https://flysoftware.com/media/news-article?id=51, move your quarterly data to the fields in their spreadsheet, and then submit from that spreadsheet.
The gov website has a list of compatible software, some are free if I remember correctly
I looked at their list, didn’t see any free ones - can take another look. Thanks
Dreading this. I have no idea what's wrong with my trusty spreadsheet and I am going to be forced to submit four tax returns a year, including in peak season, not once a year in off season.
Currently burying my head in the sand on this topic truth be told.
Is this only if the income is over a certain amount? Or does it apply to all landlords?
Only over a certain amount, and only if it’s ‘qualifying income’ which includes income as a landlord and a few other things but NOT your salary. Government website https://www.gov.uk/government/collections/making-tax-digital-for-income-tax-for-businesses-step-by-step currently says on one page that the amount is £20,000 and on the next page that it’s £50,000 so not hugely helpful.
https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax
Tax Returns for 24-25 tax year (due by 31 Jan 2026) will be assessed and if any 'qualifying income' is over £50,000 then you will need to use MTD from April 2026.
In the 25-26 tax year (due by 31 Jan 2027) any 'qualifying income' over £30,000 will need to start using MTD from April 2027.
Free or cheap 'bridging software' is available for those who do their books in Excel or other spreadsheets.
As u/barnez_d posted FlySoftware are developing MTD for IT (Income Tax). They have a little video on the VAT submission which shows how easy it is - https://www.youtube.com/watch?v=BZTVkwLAGQA
I shall certainly be keeping any eye on their Income Tax submission software...
It’s pretty simple as it uses an accruals method. You’ll still only file once a year but pay more frequently. It’s only a real Ballache if your accounting year end is currently different as you’ll need to catch up (like me). £66K in Jan next year
I use FreeAgent for all my company stuff - payroll, VAT, invoicing, expenses. They're on the ball with MTD, support have always been really helpful and it covers everything. It costs a few hundred pounds a year, which I think is really good value for what you get.