Making Tax Digital for Income Tax represents a significant change for landlords who fall within the new reporting requirements.
Instead of treating the annual Self Assessment Tax Return as the main accounting event of the year, affected landlords will need to maintain appropriate digital records and interact with HMRC more regularly.
That does not mean the process needs to become complicated. In fact, properly organised digital bookkeeping can make it easier to see rental income, property expenses and the performance of a property portfolio throughout the year.
The key is to establish a practical system before the reporting requirements apply. Bank feeds, suitable accounting software and sensible record-keeping procedures can substantially reduce the administrative burden.
First4Accounting can help landlords determine when the rules apply to them and establish an accounting process that meets HMRC requirements without creating unnecessary work.