Making Tax Digital: What Landlords Need to Know
With the upcoming Making Tax Digital (MTD) reforms on the horizon, landlords in the UK will soon need to digitise their tax records and submit updates to HM Revenue & Customs quarterly, rather than filing just once a year.
From April 2026, landlords with annual rental income exceeding £50,000 will be required to comply. Those earning between £30,000 and £50,000 will follow from April 2027. To help landlords understand when they need to start complying, the government has released an interactive tool that guides users through the requirements.
For landlords preparing for MTD, choosing MTD-compatible software will be essential. This software allows landlords to maintain digital records, submit quarterly updates, and complete an annual declaration at the end of each tax year. While moving away from paper-based records may feel daunting at first, adopting digital systems early can save time, reduce human error, and provide access to real-time financial information.
In addition to selecting appropriate software, landlords should review how they currently record their rental income and expenses. Accurate digital record-keeping will make quarterly submissions far easier, and getting organised sooner rather than later will help ensure a smooth transition.
For landlords managing multiple properties or jointly owned properties, MTD also provides clearer reporting requirements. Property income will need to be recorded within a single account, with each owner submitting their individual share where a property is jointly owned.
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For more details and to access the government’s interactive MTD tool, visit HMRC's guidance on MTD.