Consultation on reforms to property income data reporting

The government has launched a consultation regarding potential reforms to how property income data is reported to HMRC. This initiative focuses on the obligations of letting agents and tenancy deposit scheme providers, evaluating changes to the specific information reported, the frequency of submissions, and the use of tax identifiers. The goal is to enhance the quality and timeliness of data available to HMRC, which aims to assist taxpayers in meeting their obligations and support the development of digital services.

What it means for a practice

• You should be aware that new reporting requirements for letting agents and deposit schemes may impact how property income data is processed and shared with HMRC in the future.
• These changes are designed to improve data accuracy, which could streamline the verification of property income when managing client tax returns under MTD for Income Tax.
• Monitoring these proposals is advisable as they may influence the broader digital reporting landscape and the information flow between third parties and your property-owning clients.