Making Tax Digital for landlords: what you actually need to do
Making Tax Digital for Income Tax becomes mandatory from April 2026 for landlords earning over £50,000 in rental income. This guide cuts through the confusion and explains exactly what is required, what software you need, and when the deadlines apply.
From 6 April 2026, Making Tax Digital for Income Tax Self Assessment becomes mandatory for landlords with qualifying income over £50,000. If your total rental income (not profit) exceeds this threshold, you must comply.
What changes
Instead of filing a single annual tax return, you must keep digital records of your rental income and expenses using HMRC-compatible software and submit quarterly updates throughout the year.
The quarterly submission dates are 5 July, 5 October, 5 January, and 5 April. You then file an End of Period Statement and a Final Declaration.
What software you need
You must use MTD-compatible software to keep your records and submit updates. HMRC maintains a list of compatible software on their website. Most major accounting packages (Xero, QuickBooks, FreeAgent) now support MTD for Income Tax.
If you currently use spreadsheets, you will need to switch to compatible software or use bridging software that connects your spreadsheets to HMRC's systems.
The threshold drops in 2027
The £50,000 threshold applies from April 2026. From April 2027, it drops to £30,000. If your rental income is between £30,000 and £50,000, you have one year to prepare.
What to do now
Check your total rental income for the current tax year. If it exceeds £50,000, register for MTD ITSA with HMRC and choose your software before 6 April 2026. If your income is between £30,000 and £50,000, start evaluating software options now for the 2027 deadline.
Speak to your accountant. This is a fundamental change to how rental income is reported, and getting the setup right from the start will save significant time and stress.
This content is for general informational purposes only and does not constitute legal, financial, or professional advice. Always verify information against the original source and seek independent professional guidance before acting on any regulatory matter.
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