Accounting functionality will make it easier to incorporate letting agent data
A new AI accounting tool has been launched, which its creator says will allow landlords to better manage data from letting agent rental statements and more effectively navigate the Making Tax Digital for Income Tax switch.
Available within FreeAgent’s accounting software, the company says the new functionality will allow landlords and their accountants to use artificial intelligence to input and reconcile data from letting agent rental statements into their financial accounts.
Under the MTD legislation, landlords and sole traders with qualifying income of at least £50,000 must keep digital records and submit quarterly updates to HMRC in addition to their annual tax submission.
The new digital tax system will come into force for those with qualifying income of £30,000 from next April, while those earning £20,000 will have to comply from April 2028. It’s estimated that around 876,000 UK landlords will be impacted by MTD for Income Tax over the coming years.
More than a simple extraction tool
Stewart Hurd, chief sales officer at FreeAgent, said: “Our landlord solution is already one of the best products for complying with the new MTD for Income Tax rules – and this new feature will help us strengthen that position.
“We didn’t just want to build a simple extraction tool. By pairing capture technology with our AI-driven categorisation engine, we’ve ensured that FreeAgent doesn’t just read the ins and outs of a statement – we also categorise the transactions and match rental income and fee data to the correct properties, closing the compliance loop in the simplest way possible.
“The result is a game-changing feature that we believe will be hugely beneficial for landlords and their accountants. It will not only save them valuable time by improving their financial workflow and removing the need for painstaking manual data entry – but also ensure that they have the best possible solution for managing their financial accounts under the new MTD for Income Tax legislation.”
