The Residential Landlords Association (RLA) is welcoming yesterday’s announcement during the Spring Budget 2017 that the Government will delay plans for digital tax returns.
In his first Budget announcement yesterday, Chancellor Philip Hammond confirmed that the measure, known as Making Tax Digital, will be delayed by one year for landlords with a turnover below the VAT threshold, to give them more time to prepare for digital tax returns, including record keeping and quarterly updates.
Implementation of the digital tax returns is now scheduled for April 2019.
The news arrives just weeks after the RLA called for such a delay in front of a Parliamentary committee looking at the policy.
Research by the RLA last year found that 48% of landlords use spreadsheets for record keeping, 38% use paper records, and just 13% use specialist software.
The difficulties in preparing the sector to move to a fully digital system will be compounded by changes being implemented from 6th April this year, which will mean that landlords will be taxed on their turnover rather than their profit.
The Vice Chairman of the RLA, Douglas Haig, comments: “The RLA has long called for more time to enable landlords to properly implement this radical change to the system of administering tax.
“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.”
He adds: “The Chancellor has made the right decision in giving landlords more time to prepare for this important change.”
The National Landlords Association (NLA) also praised the Chancellor on his plans to delay digital tax returns, however, it was more critical of Hammond’s failure to include landlords in any other measure.
Are you pleased with the delay in digital tax returns?