Making Tax Digital (MTD) for Income Tax is now in effect, changing the way some landlords are required to keep records and report their property income to HMRC.
WHAT DOES MTD MEAN FOR LANDLORDS?
If your income falls above the current threshold, you are required to:
keep digital records of your property income and expenses; use MTD-compatible software to send quarterly updates to HMRC; and submit your tax return through compatible software by the usual 31 January deadline.
The first quarterly update deadline for the 2026/27 tax year was 7 August 2026.
The remaining deadlines are:
- 7 November 2026
- 7 February 2027
- 7 May 2027
HMRC has confirmed that penalty points will not be applied for late quarterly updates during the 2026/27 tax year, but outstanding updates will still need to be submitted.
WHAT SHOULD YOU DO NOW?
We recommend checking with your accountant or tax adviser whether MTD applies to you and ensuring that suitable HMRC-compatible software is in place. If your income means you will fall within MTD from April 2027 or April 2028, it is worth discussing the transition with your adviser well in advance.
Please note that Making Tax Digital is a tax reporting obligation and is not something we can manage on your behalf as your letting agent/property manager. Your accountant or tax adviser should advise you on your individual requirements, including any exemptions that may apply.
HOW WE CAN HELP
Your rent statement, which is automatically sent to you when we receive payment, provides a breakdown of the rental income and expenditure processed through us. This can be supplied to your accountant or tax adviser to assist with your record-keeping and MTD reporting.
We recommend keeping all relevant property records and speaking to your accountant or tax adviser if you are unsure about your obligations.