Property News | Your 2022 Lettings Round-Up

What Happened In The Rental Market in 2022?

2022 was a year of change in lettings, from new carbon monoxide, smoke alarm rules and an evolving right-to-rent process to the Renting Homes (Wales) Act 2016 coming into force – plus the arrival of the A Fairer Private Rented Sector white paper proposals. Let’s take a look ahead at the ‘Making Tax Digital for Income Tax’ rules that you’ll need to start to prepare for in the future.

A Bit About Us…

Are you curious about how your local lettings market is performing? In November alone, our Lettings team…

  • Achieved an average rent of £1071.67
  • Had a turnaround time of 9.7 days on average from offer to move in
  • On average the tenants we rent to have an income of £28798.08
  • The average age of our tenants is 25.7 years old

Preparing for making tax digital for income tax

The government announced this month that it will push back the deadline for Making Tax Digital for Income Tax to April 2026 – however, that does not mean that adapting to this key legislation should be put on hold until the end of 2025. The new deadline is to give landlords and other individuals more time to set up the correct systems, to ensure compliance. 

Here are four key things that you need to know to prepare for the changes:

  1. Only individual landlords will need to prepare for the changes in April 2026: If you operate under a limited company, you’ll be subject to MTD for corporation tax, which will come into play in 2026 at the earliest.
  2. You’ll need to start filing your tax returns quarterly: From April 2026, landlords with an estimated income of £50,000 or more from a property portfolio will need to start filing their returns detailing income and expenses, digitally – and quarterly, on top of the end-of-year statement.
  3. There will be a new penalty point system, to encourage compliance with submission dates: For late submissions, you’ll start to receive points rather than a single fine. When you reach a certain threshold, you’ll incur a £200 penalty.  The threshold depends on how frequently you file your returns. The penalty will be applied after five points have been accumulated if you file monthly, after four points for quarterly, and after two points for annual submissions.
  4. There are exemptions to the MTD rules: Any landlords wishing to seek an exemption will need to apply through the HMRC website. This will be considered on a case-by-case basis, taking into account why it’s not practical for your landlords to use software to keep digital records or submit them.

You can learn more about what’s changing in this guide to Making Tax Digital.

*Information taken from Goodlord*

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