I’ve mentioned Making Tax Digital a few times now but did I mention that Rachel Reeves announced that the threshold for participation will be as low as £20,000 by the end of the parliament? Now first of all I suspect she is planning a normal five year term so this could be 2029 but based on current popularity polls of the new government we could be talking about much earlier but I’d stick with 2029 for your MTD diaries.
At the moment those with gross income (rents before expenses) of £50,000 will have to do quarterly updates from April 2026. The threshold drops to £30,000 from April 2027 and the suggestion is now that it will be £20,000 from (say) April 2029.
By the time inflation bounces along I think this will mean anyone with two properties will be within MTD. We’re already helping a lot of landlords take steps to being ready, especially those with larger portfolios. Parkinsons Law tells us that jobs normally take the time allocated to them meaning that many people will be scrabbling to get MTD ready in June/July 2026 which of course means help on the ground will be limited (remember trying to get a sparky when EICRs come in!?) and mistakes will be made.