Making Tax Digital for landlords

Making Tax Digital (MTD) is a key part of the Government’s plan to modernise the UK tax system by requiring businesses and individuals to keep digital records, use software that works with MTD and submit updates every quarter, bringing the tax system closer to real-time. It is being phased in over several years.

Landlords need to follow the requirements for Making Tax Digital for Income Tax:

• From 6 April 2026 if you have property income of more than £50,000.
• From 6 April 2027 if you have property income of more than £30,000.
• The Chancellor’s Spring Statement in March included the announcement that MTD will be extended to individuals with property income of £20,000 or more from 6 April 2028.
• Partnerships will be required to join at a date yet to be announced.

The new MTD for Income Tax regulations necessitate that relevant individuals keep and preserve their tax records electronically and submit quarterly reports to HMRC via approved software.

Maintaining digital records

Landlords will be required by law to keep digital records. HMRC-compliant software can streamline processes, cutting down on paperwork and minimising errors. Using a trusted software provider keeps data safe through measures such as two-factor authentication and data encryption.

Landlords must submit income and expense information every three months through compatible digital platforms to comply with MTD.

HMRC Support

HMRC’s customer support model includes agents, third party software support, telephony support, webchat and HMRC’s Extra Support service. Accessible online content will also be available, including recorded webinars, YouTube videos and e-learning.