From 6 April 2026, the way landlords report their income to HMRC is set to undergo significant changes. The UK Government's Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) initiative will require many landlords to switch from filing annual tax returns to submitting quarterly digital returns.

If you're a landlord, now is the time to start preparing.

Who Will Be Affected?

MTD for ITSA will apply to unincorporated landlords whose gross income from property and/or self-employment exceeds £50,000 in the 2024–25 tax year. This threshold will drop to £30,000 in April 2027, and then to £20,000 in April 2028, meaning most landlords will eventually be included.

If you own property jointly, your share of the income is considered. For example, if a property earns £70,000 annually and is owned 50:50, each owner is deemed to earn £35,000 per year. Income from employment or pensions is not included in the MTD calculation.

What Will Change?

Landlords affected by MTD will need to:

• Register for MTD for ITSA before the relevant tax year begins.
• Use HMRC-approved software to maintain digital records of income and expenses.
• Submit quarterly updates to HMRC summarising income and expenditure.
• Submit a final declaration by 31 January following the end of the tax year, replacing the traditional Self-Assessment return.

These updates must be submitted using MTD-compatible software, which can include full accounting platforms or bridging software that connects spreadsheets to HMRC systems.

Why Is This Happening?

The government aims to modernise the tax system, making it more efficient and reducing errors. Digital record-keeping provides landlords with better visibility into their finances, facilitating effective cash flow management and informed tax planning.

What Should Landlords Do Now?

• Check your income: Review your 2024–25 tax return to see if you’ll be affected from April 2026.
• Choose your software: Select MTD-compatible software that suits your needs. For landlords with one or two properties, bridging software may be sufficient.
• Start keeping digital records: Transition from paper or manual systems to digital record-keeping as soon as possible.
• Speak to your bookkeeper or accountant: They can help you register for MTD, choose software, and ensure compliance.

How Can We Help

We support landlords across Derby, Nottingham, Leicester and the UK with expert bookkeeping and tax services. Our team can:

• Help you transition to digital record-keeping
• Recommend and implement MTD-compatible software
• Manage quarterly submissions and final declarations
• Ensure your records are accurate and compliant

We will assign you a dedicated bookkeeper who understands your property business and can guide you through the MTD process with confidence.

Contact us on 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it. to discover how we can assist you in preparing for Making Tax Digital.