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From April 2026, the way many landlords report their income to HMRC will change significantly under Making Tax Digital (MTD) for Income Tax.
If you are a landlord with combined annual income over £50,000, this new regime will apply to you from 6 April 2026. That threshold reduces to £30,000 from April 2027.
Below we outline what’s changing, who it affects, and how we are supporting our managed clients through the transition.
What is Making Tax Digital (MTD)?
MTD for Income Tax requires self-employed individuals and landlords to:
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Keep digital records of all income and expenses
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Submit quarterly updates to HMRC using compatible software
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File a final annual declaration by 31 January following the end of the tax year
Importantly, the threshold applies to gross income (turnover), not profit.
Who Does It Apply To?
MTD will apply to:
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Self-employed individuals
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Landlords
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Individuals with both self-employment and property income
If your combined gross income from these sources exceeds:
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£50,000 from April 2026
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£30,000 from April 2027
you will need to comply.
Some individuals may be exempt if they are digitally excluded (for example due to age, disability, location, or religious reasons), but most landlords above the threshold should assume this will apply to them.
What Will You Need To Do?
1️⃣ Keep Digital Records
Paper records will no longer be sufficient. Income and expenses must be recorded digitally using approved software.
2️⃣ Submit Quarterly Updates
You will need to send a summary of income and expenses to HMRC every three months.
If using standard tax year quarters, deadlines will be:
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7 August (6 April – 5 July)
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7 November (6 July – 5 October)
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7 February (6 October – 5 January)
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7 May (6 January – 5 April)
3️⃣ Submit a Final Annual Declaration
This replaces the current Self Assessment tax return and must be submitted by 31 January following the tax year end.
Key Dates to Keep in Mind
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31 January 2026 – Deadline for 2024–2025 Self Assessment
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6 April 2026 – MTD digital record-keeping begins (for those over £50,000)
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7 August 2026 – First quarterly update due
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31 January 2027 – Final traditional Self Assessment for 2025–2026
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31 January 2028 – First full annual submission under MTD
From this point onward, quarterly reporting becomes the norm.
What This Means for Landlords
For many landlords — particularly those who self-manage — this represents a significant administrative shift.
Instead of preparing figures once a year for your accountant, you will need:
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Up-to-date digital bookkeeping
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Quarterly reporting discipline
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MTD-compatible software
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Ongoing oversight of income and expenses
While HMRC position MTD as a way to reduce errors and improve visibility of tax due, it undeniably increases reporting frequency and compliance obligations.
How We Are Supporting Our Clients
If you subscribe to our Rent Collection or Fully Managed services, we are already preparing for this change.
Currently, our managed clients receive an annual Income & Expenditure Statement to support their tax return.
From April, we will also provide:
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Quarterly Income & Expenditure Statements as part of our service
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Statements structured to support MTD compliance
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A forward plan to provide reports in an HMRC-compliant format for direct software upload
Our aim is to reduce the additional administrative burden for landlords and ensure you are well positioned ahead of the 2026 deadline.
Are You Prepared?
If your property income is approaching £50,000 — or likely to exceed £30,000 in the coming years — now is the time to review how you manage your reporting.
If you are currently self-managing and concerned about the administrative impact of quarterly digital submissions, we would be happy to discuss how our Rent Collection or Fully Managed services can support you.
If you would like to understand how MTD will affect your specific circumstances, please get in touch with our team.
