Making Tax Digital: What Landlords Need to Know

As we head into spring, there’s a tax change on the horizon that landlords should have on their radar… Making Tax Digital (MTD). The good news is that while it sounds like a big shift, the reality is fairly straightforward (and, frankly, something HMRC has been hinting at for quite some time).

From April 2026, landlords with property income over £50,000 will need to follow the new MTD rules. The threshold then drops to £30,000 in April 2027 and £20,000 in April 2028. The key point here is that these figures relate to income before expenses, not profit.

So what actually changes?

Instead of submitting tax information just once a year through Self Assessment, landlords will need to send quarterly updates to HMRC using compatible software, followed by a final end-of-year declaration.

Before you panic at the thought of four tax returns a year, it’s not quite that dramatic. The quarterly updates are essentially regular summaries of your income and expenses, keeping HMRC updated throughout the year.

What should landlords do now?

In truth, preparation mostly comes down to good record-keeping. Keeping track of rent received, expenses, and receipts will remain just as important as ever, the main difference is that these records will need to be stored digitally and submitted through software.

Need a hand?

Changes like this can feel a little daunting at first, but once the right systems are in place it tends to run quite smoothly.

If you’re unsure whether Making Tax Digital will apply to you, or you’d like advice on how to get prepared, please feel free to get in touch. We work with a number of trusted providers and would be more than happy to recommend options and answer any questions.

After all, when it comes to tax changes, it’s always nicer not to tackle HMRC alone.

So to recap the key dates to mark:

• April 2026: income over £50,000

• April 2027: income over £30,000

• April 2028: income over £20,000