🏠 HMRC has made it very clear that landlords are firmly in its sights this year. With Making Tax Digital for Income Tax now live for those earning over £50,000, and a wider rollout to those with income above £30,000 on the horizon for April 2027, the scrutiny on rental income has never been greater.
Even before MTD applies to you, HMRC's Connect system, which cross-references data from letting agents, Land Registry, and mortgage providers, is increasingly being used to identify landlords who may not be declaring income correctly or at all.
If you rent out property and haven't reviewed your tax position recently, now is a good time to do so. Common areas where landlords fall foul of HMRC include claiming mortgage interest incorrectly (the deduction rules changed significantly in recent years), missing out on allowable expenses, and failing to declare income from short-term lets on platforms like Airbnb.
The good news is that if things have slipped, HMRC's voluntary disclosure facility means you can come forward and put things right with reduced penalties. Getting ahead of any issue is always the better approach.
If you're a landlord and you'd like to make sure your affairs are in order, have a word with your Client Manager. We're here to help.
