Making Tax Digital (MTD) for most landlords has come into effect as of April 6, 2026. MTD for landlords in the UK requires you to maintain digital records and submit quarterly updates to HMRC in place of traditional paper or spreadsheets. The main purpose of the change is to modernise tax records, reduce errors, and improve compliance through more frequent digital reporting.
To learn more about MTD for landlords in the UK, follow our essential guide to find out how you may be affected.
Making Tax Digital Explained
MTD is an initiative to digitise tax reporting and record-keeping for businesses, sole traders, and landlords.
It involves using compatible software to keep digital records of income and expenses, submitting quarterly updates to HMRC throughout the year, and sending a final end-of-year declaration via Self Assessment. While MTD has applied to VAT businesses since 2019, new rules now require certain landlords to comply.
Does Making Tax Digital Apply to Landlords?
MTD applies to landlords with a qualifying income of £50,000 or more, including those with jointly owned properties. This will gradually decrease over the following years to £30,000 in 2027 and £20,000 in 2028.
However, there is a group of landlords that MTD does not currently apply to:
- Landlords with less than £50,000 qualifying income
- Landlords who operate through limited companies
- Landlords with UK properties but no National Insurance (NI) number
- New landlords who may not need to register immediately, depending on circumstances
If you’re still unsure whether or not MTD applies to you, we advise reaching out to an accountant for clarity and support.
What Counts as Qualifying Income for Landlords
Qualifying income for landlords includes:
- Property income – annual gross property income before expenses
- Self-employment income – gross earnings from sole trader or freelance work
Anything that isn’t property income or self-employment income does not count as qualifying income, such as:
- Employment income (PAYE)
- Pension income
- Partnership income
- Dividends
These specific payments don’t count towards the MTD threshold and should be reported separately via Self Assessment instead. You can check if your qualifying income is above the current threshold using the government checker tool.
When Does Making Tax Digital for Landlords Start?
So, when does MTD for landlords start? MTD for landlords starts on April 6, 2026. For the remainder of the tax year, all landlords with a qualifying income of £50,000 or more must use MTD and comply with the rules set in place to avoid penalties from HMRC.
How Does Making Tax Digital Affect Landlords?
If you’re a landlord in the UK, you’re likely wondering how MTD will affect you. While MTD can seem difficult to understand in parts, the process is designed to streamline tax reporting.
Maintain Digital Records
As the new MTD rules roll out, landlords are now required to maintain digital records rather than use traditional paper filing systems or spreadsheets. This involves keeping accurate records of all property income and expenses in one place.
If you’re a landlord and self-employed, you must keep records and finances separate. Compatible software is used to file taxes and maintain digital records, which can be completed with the help of a trusted accountant who’s familiar with MTD compliance.
Submit Quarterly Updates
MTD requires four quarterly updates per year to summarise your property income and expenses.
From April 6, 2026, deadlines for quarterly updates are:
| Date | Year |
|---|---|
| 7 August | 2026 |
| 7 November | 2026 |
| 7 February | 2027 |
| 7 May | 2027 |
If you fail to meet the set deadlines for quarterly updates, you’ll likely receive fines and penalties, which include one point per missed update or tax return, a £200 fine for every four points you accumulate, and a further £200 for every additional late submission after that.
End-of-Year Updates
Once you’ve completed your four quarterly updates, you must finalise your total income by completing a final declaration, similar to an annual Self Assessment.
Completing an end-of-year update ensures all of your quarterly updates have been filed accurately, allowing you the opportunity to make any amendments if needed. The deadline to submit your end-of-year updates and pay any outstanding tax payments is 31 January.
Can Landlords Manage Making Tax Digital Without Help?
MTD is often best handled by an experienced accountant, especially if your line of work is operating as a landlord. Working with properties and tenants can be time-consuming, and adding new MTD responsibilities may become overwhelming.
At LJS Accounting Services, we offer expert services for both self-employed individuals and landlords who are now required to comply with MTD. Our friendly MTD accountants provide expert support, freeing up time to focus on managing your properties. As part of our service, we’ll find the best MTD software for landlords and handle everything on your behalf, such as ensuring tax accuracy and compliance.
To find out more about how our accountants can help landlords comply with MTD, please contact us today.
