By For UK landlords, tax reporting is set to undergo a significant transformation with the introduction of Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) in April 2026.
This initiative, designed to modernise the tax system, will fundamentally change how landlords record income and expenses and interact with HMRC.
While it might seem like a distant prospect for some, the rollout is approaching rapidly, and proactive preparation is key to a smooth transition and avoiding potential penalties.
Please note that this article is for educational purposes only and is not tax advice. To ensure compliance, seek professional advice from a qualified and trusted accountant.
What does Making Tax Digital mean for landlords?
Making Tax Digital for landlords will apply to those who are unincorporated (i.e., not a limited company) and have a qualifying income exceeding £50,000 from April 2026.
Landlords operating in a limited company structure are currently not affected and will be required to pay corporation tax.
Under the new changes, landlords will be required to keep digital records of all property income and expenses and submit quarterly updates instead of a single annual Self-Assessment tax return.
From April 2026, qualifying landlords will be subject to submitting a return to HMRC every three months using MTD-compatible software.
As it stands, the deadlines for quarterly submissions will be the same for all who must follow MTD for Income Tax rules. After 6th April 2026 and beyond, the deadlines will be:
- 7th August
- 7th November
- 7th February
- 7th May
However, the extra admin doesn’t end there! At the end of the tax year, landlords will also be required to submit a final declaration through their chosen approved software, replacing the traditional Self-Assessment tax return. This will confirm your total income, allow for any adjustments, and declare your tax liability.
When does MTD for Self-Assessment start?
Phase one of Making Tax Digital for Income Tax will start on 6th April 2026. For those who qualify, MTD will replace the current system of annual Self-Assessment tax returns.
The key dates for the diary are:
- April 2026: If your gross qualifying income was £50,000
- April 2027: If your gross qualifying income was £30,000
If you’re unsure whether you’ll be affected, speak to a trusted tax advisor.
Making Tax Digital for landlords
Whilst it may feel like another hurdle for landlords operating in the private sector, HMRC’s aim with MTD is to modernise the tax system, reduce errors, and make it easier for taxpayers to manage their affairs.
On a more positive note, quarterly updates may provide landlords with a clearer overview of their tax position, potentially helping with budgeting and avoiding last-minute tax bills.
How can landlords prepare for MTD?
It might seem obvious, but don’t wait until the last minute! Taking steps now will save you stress and ensure a smooth transition.
Firstly, it’s essential to determine if MTD will apply to you, so seek advice from your accountant to see if you’ll be affected.
Landlords can start by calculating their gross qualifying income for the relevant tax year (e.g., 2024-25 for the April 2026 deadline) to determine when Making Tax Digital will apply to them. Remember to combine all income from property and self-employment.
If you are affected by MTD, it’s essential to select MTD-compatible software to help maintain accurate digital records of your income and expenses. Follow the link for government advice on compatible software.
Although April 2026 may seem far away, it’ll soon come around, so start getting into the habit of keeping all your property income and expense records digitally. This means moving away from paper receipts and towards digital invoicing and expense tracking.
If you’re unsure about any aspects of MTD or how it affects your specific circumstances, consult with an accountant or tax advisor who is well-versed in MTD for landlords. They can help you choose the right software, ensure compliance, and even manage your submissions for you.
Finally, stay informed
For landlords, it is becoming increasingly challenging to stay on top of the numerous changes on the horizon. Free education events like the National Landlord Investment Show on 9th July in London, Old Billingsgate with an expert panel on “Future-Proof Your Finances: Embracing Making Tax Digital: The tax landscape is evolving: — are you ready?” are crucial to attend to stay ahead and informed of the changing tax landscape. Plus, the show offers you an opportunity to network and connect with 100+ expert service providers serving the UK Private Rented Sector (PRS). The show is free to attend, but secure your ticket and register to attend.
Additionally, stay informed digitally with access to on-demand content by becoming a LIS member today. Register for your free LIS Membership and gain access to a portal of high-value content crafted by industry experts to help landlords remain informed and compliant across a range of educational topics.
For more information, visit the Gov.uk website.
This article has been prepared to provide an overview of Making Tax Digital for landlords. We have done our best to ensure that we publish the latest and correct information; however, it is subject to change. It is advisable to seek independent advice from a qualified tax advisor to ensure compliance.
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