Making Tax Digital (MTD) has been on the horizon for several years, but for many landlords, the changes are now very real, and very close. From April 2026, landlords earning over £50,000 per year from property and self-employment income will be required to change how they record and submit their tax information.
If you’re unsure whether this affects you, or what you need to do to prepare, here’s a simple breakdown.
What is Making Tax Digital?
Making Tax Digital is a government initiative designed to modernise the UK tax system. Its aim is to move tax reporting away from paper records and manual returns, instead requiring income and allowable expenses to be recorded and submitted digitally using approved software.
MTD is already in place for VAT-registered businesses and is now being rolled out to Self-Assessment taxpayers, including many landlords, in stages over the coming years.
What will landlords need to do?
If you fall within the scope, you’ll need to:
- Use Government-approved MTD-compatible software to keep digital records
- Submit quarterly updates of income and expenses to HMRC
- Send a final end-of-year declaration to confirm accuracy and claim any allowances
Quarterly submissions will replace the single annual Self-Assessment return most landlords currently complete. They will be due on the 7th of the month following the end of the quarter.
A final declaration, similar to the current Self-Assessment return, must still be submitted by 31 January, but this must also be done digitally through approved software. Paper submissions or non-digital methods will no longer be allowed.
All submissions will be made directly to HM Revenue and Customs using the new software.
Who is affected and when?
Making Tax Digital will apply based on your qualifying income, which includes rental income and income from any self-employed trading business (before expenses).
The rollout dates are:
- From 6 April 2026 – Landlords earning £50,000+
- From 6 April 2027 – Landlords earning £30,000+
- From 6 April 2028 – Landlords earning £20,000+
This includes income from UK and overseas property. It does not include PAYE employment income, limited company income, pensions, interest, or investment income.
What if I earn below £20,000?
There is currently no confirmed date for landlords earning below £20,000, but it’s widely expected that lower earners may be brought into the system in the future. Preparing early is still strongly recommended.
Jointly owned properties – how does that work?
If you own property jointly, only your share of the income counts towards your qualifying income.
The same applies if ownership is split unevenly. HMRC will look at the income attributable to you personally, not the total rental income of the property.
Are any landlords exempt?
Most landlords will be affected, but there are a few exemptions:
- Limited company landlords (they continue to pay Corporation Tax)
- Individuals classed as digitally excluded
- Certain groups are currently exempted, including:
- Religious ministers
- Lloyd’s underwriters
- Recipients of the Married Couples’ Allowance or Blind Persons’ Allowance
Exemptions are limited and must usually be approved by HMRC.
How can landlords prepare now?
The best approach is to prepare early. Key steps include:
- Familiarising yourself with MTD requirements well before your compliance date
- Organising your income and expense records
- Choosing MTD-compatible software that works for you
- Speaking to your accountant or property professional about the changes
Digital record-keeping will soon be a requirement, not an option, and early preparation can help avoid last-minute stress, errors, or penalties.
Making Tax Digital for Landlords is coming, and the countdown has begun.
If you’re a landlord affected by these changes, now is the time to get ready. If you need more information or support, get in touch with us today.
