Making Tax Digital for Landlords: What's Changing and When

Making Tax Digital (MTD) is the biggest change to how landlords report tax in a generation — moving from one annual return to quarterly digital updates. It’s being phased in by income level from April 2026. Here’s what’s changing, when it affects you, and how to get ready.

What is Making Tax Digital for Income Tax?

MTD for Income Tax (sometimes “MTD for ITSA”) requires landlords and the self-employed to:

Keep digital records of income and expenses using compatible software
Send HMRC a quarterly update of their figures (four times a year)
Submit a final declaration after the tax year, replacing the single Self Assessment return

It’s a shift from “do it all once in January” to a regular, software-based rhythm.

When does it apply to you?

MTD is being introduced in stages, based on your total gross income from property and self-employment (not your profit):

From	If your gross income is over
6 April 2026	£50,000
April 2027	£30,000
April 2028	£20,000

So higher-income landlords are first. Note it’s gross income — the rent before expenses — that counts, and it combines property and any self-employment income.

What changes in practice

The headline differences from today:

Four quarterly updates instead of one annual return
Digital records are mandatory — spreadsheets only count if linked by bridging software
Compatible software is required to keep records and file
A final declaration ties the year together

For landlords with several properties, keeping clean per-property digital records becomes essential — which is exactly what good bookkeeping for landlords provides.

How to prepare

The landlords who’ll find MTD painless are the ones who get ready early:

Start keeping digital records now — income and expenses, per property
Get onto compatible cloud software before your start date
Keep your bookkeeping current rather than reconstructing it each year
Know your start date based on your gross income

Leave it to the last minute and the quarterly deadlines arrive fast. Set it up in advance and it’s barely noticeable.

Don’t let it catch you out

MTD adds deadlines and software requirements that didn’t exist before — and the first quarterly updates for £50,000+ landlords begin in April 2026. Our accountants for landlords get you set up on the right software, keep your records MTD-ready, and can file your quarterly updates and final declaration for you — so the change is handled rather than a headache. It pairs naturally with your ongoing Self Assessment and the wider picture in our landlord tax guide.

Frequently asked questions

When does Making Tax Digital start for landlords?

Making Tax Digital for Income Tax is being phased in by income level. It starts from 6 April 2026 for landlords (and sole traders) with gross income over £50,000, from April 2027 for those over £30,000, and from April 2028 for those over £20,000. The threshold is based on total gross self-employment and property income, not profit.

What does Making Tax Digital mean for landlords?

Once you're in MTD, you must keep digital records of your rental income and expenses using compatible software, send HMRC a quarterly update of your figures, and submit a final declaration after the tax year instead of a single Self Assessment return. In practice it means more frequent, software-based reporting.

Do all landlords have to use Making Tax Digital?

Eventually most will, but it's phased by income. If your combined gross property and self-employment income is below £20,000 you're not yet required to join, though that may change. Some landlords (for example certain trustees) are exempt, and you can apply for exemption if you're digitally excluded.

What software do I need for MTD?

You'll need HMRC-compatible software (or bridging software linked to spreadsheets) to keep digital records and file the quarterly updates. We set landlords up on suitable cloud software and can file on your behalf, so the change is a non-event rather than a burden.

How do I prepare for Making Tax Digital as a landlord?

Start keeping digital records of your rental income and expenses now, get onto compatible software before your start date, and make sure your bookkeeping is current and per-property. Getting set up early means you're ready well before MTD applies to your income level.

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Reviewed by Provense Accountants

Written and reviewed by our team of qualified accountants (AAT-regulated). This guide is general information, not personal tax advice — book a free consultation for advice on your situation.