Making Tax Digital for Landlords: What You Need to Know Before April 2026

From 6 April 2026, Making Tax Digital (MTD) for Income Tax will introduce new reporting requirements for some landlords. If your gross rental income exceeds £50,000 per year, you may be required to submit quarterly digital updates to HMRC.

What Is Changing?
Under the new rules, affected landlords will need to:
• Keep digital records of rental income and expenses
• Use HMRC-recognised software
• Submit quarterly updates to HMRC
• File an annual tax return

It is important to note that HMRC defines gross rental income as income before any letting agent fees are deducted.

Who Does This Apply To?
The rules apply to sole traders and landlords with gross income over £50,000, based on the 2024–25 tax year. Businesses and landlords with lower income thresholds are expected to be phased in at later dates.

What Should Landlords Do Now?
• Review your rental income levels
• Speak to your accountant or tax adviser
• Research compatible accounting software
• Ensure your record-keeping processes are digital

Where to Find More Information
Full details are available on the official HMRC website: https://makingtaxdigital.campaign.gov.uk/

Please note, this article is for general information only and does not constitute tax advice. Landlords should seek professional guidance specific to their circumstances.

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