Digital tax records only for landlords with £85K plus turnover
News that only those landlords with a turnover above £85,000 will be expected to keep digital tax records as part of a new government initiative, has been welcomed.
Ministers had previously said the 'making tax digital' scheme would apply to those with turnover above £10,000, but this week confirmed that the changes would only apply to businesses with a turnover above the VAT threshold (currently £85,000) and they will have to keep digital records only for VAT purposes, from 2019.
Businesses and landlords will also not be asked to keep digital records, or to update HMRC quarterly, for other taxes until at least 2020.
Concerns raised by the Residential Landlords Association (RLA) were voiced by Douglas Haig, RLA Vice-Chairman and Director for Wales, in oral evidence provided to a House of Lords committee.
RLA Policy Manager, John Stewart said: “The RLA has long called for an increase in the threshold at which digital tax records will be required, and for more time to enable landlords to properly implement this radical changes.
“Whilst we support efforts to improve the efficiency of the system, faced with unhelpful changes to the way they will be taxed, the last thing landlords needed was an imminent change to the way they keep their records.
“The Treasury has made the right decision in giving landlords more time to prepare for the policy, where it applies to them, and we welcome the Government listening and responding so positively to our concerns.”