From 2026, all UK landlords above certain income thresholds will need to submit their tax returns digitally under the Government’s Making Tax Digital (MTD) initiative. Here’s what you need to know.
What Is Making Tax Digital?
Making Tax Digital is a Government programme to modernise the UK tax system. Landlords under MTD must:
- Keep digital records of property income and expenses
- Submit quarterly updates to HMRC
- File a final end-of-year declaration by 31st January
Quarterly Reporting
Updates are due on: 7th May, 7th August, 7th November, and 7th February. The end-of-year declaration covers any additional income and confirms your records. All submissions must use MTD-compatible software.
Who Will Be Affected?
Landlords paying Self-Assessment tax will need to comply based on annual property income:
- 2026: £50,000+
- 2027: £30,000+
- 2028: £20,000+
Limited company landlords are not affected.
Exemptions
Certain groups may qualify for exemptions, including:
- Individuals with a Power of Attorney
- Non-UK resident entertainers or sportspeople with no other qualifying income
- Cases where HMRC cannot provide a digital service
Penalties
HMRC is increasing fines for late or incorrect submissions. Staying compliant is crucial to avoid penalties.
How We Can Help
Keeping up with Making Tax Digital doesn’t have to be stressful. Our managed service for landlords can:
- Prepare quarterly statements to ease the burden
- Support you with your end-of-year declaration
- Ensure you claim all eligible allowances and reliefs
We make it easy to stay compliant: you’ll have everything ready for submission through your MTD-compatible software, reducing the time and effort you spend on tax reporting.
Getting Started
- Familiarise yourself with MTD requirements via HMRC’s toolkit
- Ensure your software is MTD-compatible to submit updates and declarations
Key Takeaway: Start preparing now. High-earning landlords will need to comply soon, and proper software (or a managed service) will make the transition smooth and stress-free.
