The Office of Tax Simplification (OTS) wants to know what landlords feel about proposed plans to make their tax digital. The OTS has published a document setting out the scope of a project looking at the practical tax reporting and payment arrangements for self employed people and landlords of residential property. The OTS has produced two short online surveys to gather information about people’s experience and views on the current system and potential areas of improvement.
All responses will be anonymous. These surveys will remain open until 20 September 2019.
As a first step towards putting buy to let accounts online, the OTS is asking if landlords input their rent and expenses data into specialist software or apps.
But the big issue is whether landlords want to change to pay-as-you-go tax, with tax paid on income and spending data filed on a rolling schedule through the year or if they would prefer to keep to the current annual filing system.
The changes would only affect individual landlords as property companies have their own filing schedules based on the month of incorporation.
The OTS also wants to know if landlords are in favour of pre-populated financial data sourced from banks, letting agents and other organisations which is already collected by HMRC.
“The work will be open to considering a relatively wide range of factors and possibilities, but only in limited depth,” says the OTS.
“Considering the likely benefits or drawbacks of these will help identify the most promising or necessary areas for further, more detailed work, in the light of the findings made, and in the context of wider developments and discussions with HMRC.”