Making Tax Digital: What Landlords Need to Know

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If you're a landlord in the UK, Making Tax Digital (MTD) is something you’ll want to be aware of — especially with the need to be paper-free by April 2026.

While the changes have been delayed several times, the government’s aim is clear: to move away from annual paper returns and bring the tax system into the digital age.

What is Making Tax Digital?

MTD is HMRC’s initiative to digitise tax reporting, making it easier for individuals and businesses to get their tax right.

For landlords, it means keeping digital records of rental income and expenses, and sending quarterly updates to HMRC using compatible software.

When Will MTD Apply to Landlords?

From April 2026, MTD for Income Tax Self-Assessment (MTD for ITSA) will apply to:

  • Individuals with a gross income over £50,000 from self-employment and/or property

  • This includes landlords with property income above that threshold

From April 2027, it will extend to those earning between £30,000 and £50,000.

At present, those earning under £30,000 are not included — though this may change in future. Further eligibility criteria for mandatory phases can be found on the government’s website.

What Will Landlords Be Required to Do?

Once MTD applies to you, you’ll need to:

  • Keep digital records of your rental income and expenses

  • Submit quarterly updates to HMRC via MTD-compliant software

  • Submit a final end-of-year statement, including any necessary adjustments

This replaces the need to file a traditional annual Self Assessment tax return.

What About Jointly Owned Properties?

If you own a rental property with someone else, such as a spouse or business partner, each person will need to meet their own MTD obligations separately — even if the income is from the same property.

Getting Prepared

Landlords will need to use MTD-compatible software to submit their Income Tax returns to HMRC. This includes reporting income and expenses not typically managed by your agent, such as mortgage interest, insurance premiums, and any self-employment income.

To support this transition, HMRC has published a list of third-party software providers whose tools are already recognised as MTD-compatible for Income Tax. These solutions meet the necessary criteria for digital record-keeping, quarterly updates and end-of-year submissions.

At Maplewood Property, we already use a market-leading cloud-based CRM with robust financial features. SME Professional has confirmed with HMRC that landlords can export their financial data for use with third-party tax software — an approach HMRC expects to remain acceptable long into the future.

We also anticipate future integrations with leading tax platforms, enabling dedicated export formats to make the process even more seamless.

If you’d like to discuss your specific circumstances, get in touch to discuss how the upcoming changes could affect you.