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
-
Tribunal rejects reliance on adviser as reasonable excuse
A recent First-tier Tribunal decision has confirmed that relying on an accountant does not automatically amount to a reasonable excuse for missing a self-assessment deadline. The case highlights the limits of delegating tax responsibilities. What does this mean in practice?
-
HMRC issues new wave of offshore “nudge” letters
HMRC has issued a further round of “nudge” letters targeting individuals it believes may have undeclared offshore income or gains. The letters form part of HMRC’s ongoing use of data from international information exchange agreements. What should you do if you receive one?
-
Payroll changes for 2026/27
As the end of 2025/26 draws closer, HMRC has published a raft of updates and reminders for employers. Which changes do you need to be aware of that might impact your payroll in 2026/27?