Making Tax Digital (MTD) for UK Landlords
Making Tax Digital for Income Tax (MTD for ITSA) is one of the biggest changes to hit UK landlords in years. If your gross property income exceeds £50,000, you are already required to comply from April 2026 — and the threshold drops to £30,000 in 2027 and £20,000 in 2028. We help landlords understand exactly what's required, get the right software in place, and handle their quarterly submissions so nothing falls through the cracks.
What is Making Tax Digital for Landlords?
Making Tax Digital for Income Tax replaces the traditional annual self-assessment return with a new system of quarterly digital submissions to HMRC. Instead of filing once a year, landlords must:
• Keep digital records using HMRC-approved software
• Submit a summary of income and expenses to HMRC four times a year
• File a final end-of-year declaration by 31 January
This is not optional — failure to comply will result in penalties from HMRC.
Who does MTD apply to?
April 2026
£50,000 +
Gross income
April 2027
£30,000 +
Gross income
April 2028
£20,000 +
Gross income
MTD applies to self-employed individuals and landlords based on their gross income — not profit. The rollout works as follows:
-
From April 2026: landlords with gross property or self-employment income over £50,000
-
From April 2027: the threshold drops to £30,000
-
From April 2028: the threshold drops to £20,000
Important: this is based on your total gross rental income — not your profit after expenses. If your properties bring in £52,000 in rent but your costs reduce your profit significantly, you still need to comply from April 2026.
How We Help
We take the complexity out of MTD so you can focus on your portfolio. Our MTD service includes:
• Assessing whether and when you need to comply
• Recommending and setting up the right MTD-compatible software for your situation
• Handling your quarterly submissions to HMRC on your behalf
• Reviewing your records to make sure nothing is missed
• Filing your final year-end declaration accurately and on time
• Keeping you informed of any rule changes that affect you
We use plain English throughout — no jargon, no surprises.
Common Questions
Do I need MTD if I only have one rental property?
It depends on your gross rental income, not the number of properties. If your single property brings in more than the threshold for your year, you are required to comply.
What software do I need for Making Tax Digital?
You will need HMRC-recognised software that can keep digital records and submit quarterly updates directly to HMRC. We assess your situation and recommend the right tool — and we can set it up for you.
What happens if I miss a quarterly submission?
HMRC's new penalty points system applies to MTD. You accumulate points for late submissions, and once you reach the threshold for your submission frequency, a financial penalty is charged. We manage your submissions so this never happens.
Does MTD replace self-assessment completely?
Not entirely. You will still file a final declaration each year (similar to a self-assessment return) confirming all your income and claiming reliefs. The key change is the four quarterly updates required throughout the year.
I am already a self-assessment client — do I need to do anything?
If you are already a client, we will contact you ahead of your MTD start date to make sure everything is in place. If you are unsure of your position, book a call and we will check for you.
When do I need to start?
That depends on your gross income. The earliest date is April 2026 for those earning over £50,000. The sooner you get set up, the less stressful the transition will be.