HMRC relaxes MTD rules for joint property owners
New HMRC guidance confirms two MTD easements for joint property owners, but a third previously available to self-assessment users is missing. What do you need to know?
HMRC has recently published a digital record-keeping notice in relation to Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). The notice includes, amongst other things, confirmation of two easements for joint property owners. Joint property owners using MTD ITSA can save time by:
- Reporting gross rental income from jointly held properties in their quarterly updates, and report expenses later as part of the year end finalisation process; and
- Creating a single digital record for each category of income from jointly held properties and a single digital record for each category of expense from jointly held properties.
However, the Institute of Chartered Accountants in England and Wales (ICAEW) is concerned that there is no mention of how joint owners should report income if they only receive the net profit share figure. Under self-assessment, it is currently sufficient to report this as a single figure, but it appears this is not being replicated under MTD ITSA (subject to further announcements). It is also unclear whether that relaxation will continue to apply to self-assessment and the ICAEW has approached HMRC for confirmation.
Related Topics
-
How to handle workers aiming to "Slide Away" to an Oasis Concert
The Oasis Live ’25 UK reunion tour starts in Cardiff on 4 July 2025 and concludes in London on 28 September 2025. With ticketless fans keen on obtaining last-minute tickets and ticketed fans eager to get to the gig for when the gates open, this could have an impact on staff productivity and timekeeping. How can you tackle these issues?
-
Is getting your business to pay tax efficient?
You were recently involved in an online discussion about the tax consequences of putting the cost of a celebratory meal for the business owners and staff through the firm’s books. Will doing so save or increase tax overall?
-
VAT-saving opportunity with changes to the CGS?
The government has announced that it will increase the capital goods scheme (CGS) threshold for capital expenditure on land and buildings from its current level of £250,000. What will the new threshold be, and how can you take advantage?