{"id":27983,"date":"2025-02-13T11:10:57","date_gmt":"2025-02-13T11:10:57","guid":{"rendered":"https:\/\/smh.group\/?p=27983"},"modified":"2025-02-20T14:00:34","modified_gmt":"2025-02-20T14:00:34","slug":"making-tax-digital-new-rules-for-self-employed-and-landlords","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/making-tax-digital-new-rules-for-self-employed-and-landlords\/","title":{"rendered":"Making Tax Digital: New rules for self employed and landlords"},"content":{"rendered":"<p><strong>A busy start for HMRC on Making Tax Digital (MTD) for 2025 with focus falling on new guidance for three-line accounts and joint property income.<\/strong><\/p>\n<p>Self-employed individuals and landlords with an annual income of more than \u00a350,000 will start using MTD from 6 April 2026. The \u00a350,000 test is based on overall self-employed and property income for the current 2024\/25 tax year.<\/p>\n<p><strong>Three-line accounts<\/strong><\/p>\n<p>HMRC has confirmed a three-line account approach:<\/p>\n<ul>\n<li>Currently, when completing a self-assessment tax return, self-employed individuals and landlords whose income from either self-employment or property is below the VAT registration threshold of \u00a390,000, need only enter one figure for total expenses.<\/li>\n<li>Therefore, keeping digital records for MTD should be a matter of classifying amounts as either income or expense.<\/li>\n<li>Each quarter, only the total income and expense figures will be submitted to HMRC.<\/li>\n<\/ul>\n<p>The one exception is when a landlord incurs residential finance costs, which must always be recorded separately because they are not a deductible expense.<\/p>\n<p><strong>Joint property income<\/strong><\/p>\n<p>Joint property owners only need to record their share of the property\u2019s income and expenses.\u00a0If a landlord chooses to, they can simply record income on a quarterly basis and expenses on an annual basis at the end of the tax year. Individual transactions will not have to be captured; only a total figure for each income and expense category.<\/p>\n<p>If the joint property owner is eligible to use a three-line account approach, it gets even simpler. A total quarterly income figure and a total expenses figure at the year end. Recording and reporting will then be:<\/p>\n<ul>\n<li><strong>Each quarter:<\/strong> record a single income figure and submit to HMRC.<\/li>\n<li><strong>End of the tax year: <\/strong>record a total figure for expenses and report through the end-of-year finalisation process.<\/li>\n<\/ul>\n<p>HMRC\u2019s guidance on the categories of income and expenses that need to be included in quarterly updates (if a three-line account approach is not used) can be found <a href=\"https:\/\/www.gov.uk\/government\/publications\/update-notice-for-making-tax-digital-for-income-tax\/making-tax-digital-for-income-tax-update-notice#a-relevant-person-with-property-income-and-profits-from-a-jointly-let-property-which-are-chargeable-to-income-tax-under-part-3-ofittoia-2005-property-income\">here<\/a>.<\/p>\n<p>For more information,\u00a0<a href=\"https:\/\/devstagesite.co.uk\/smhgroup\/contact\/\">contact us<\/a>\u00a0on\u00a0<strong>0114 266 4432<\/strong><strong>\u00a0<\/strong>or email\u00a0<a href=\"mailto:info@smh.group\"><strong>info@smh.group.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A busy start for HMRC on Making Tax Digital (MTD) for 2025 with focus falling on new guidance for three-line accounts and joint property income. Self-employed individuals and landlords with an annual income of more than \u00a350,000 will start using MTD from 6 April 2026. The \u00a350,000 test is based on overall self-employed and property income for the current 2024\/25 tax year. Three-line accounts HMRC has confirmed a three-line account approach: Currently, when completing a self-assessment tax return, self-employed individuals and landlords whose income from either self-employment or property is below the VAT registration threshold of \u00a390,000, need only enter one figure for total expenses. Therefore, keeping digital records for MTD should be a matter of classifying amounts as either income or expense. Each quarter, only the total income and expense figures will be submitted to HMRC. The one exception is when a landlord incurs residential finance costs, which must always be recorded separately because they are not a deductible expense. Joint property income Joint property owners only need to record their share of the property\u2019s income and expenses.\u00a0If a landlord chooses to, they can simply record income on a quarterly basis and expenses on an annual basis at the [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":27963,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[3],"tags":[106,1187,104],"class_list":["post-27983","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-smh-accounting-business-advisory","tag-making-tax-digital","tag-making-tax-digital-mtd","tag-mtd"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Making Tax Digital: New rules for self employed and landlords - SMH Group<\/title>\n<meta name=\"description\" content=\"A busy start for HMRC on Making Tax Digital for 2025 with focus falling on new guidance for three-line accounts and joint property income.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Making Tax Digital: New rules for self employed and landlords - 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