Many landlords are still unaware of the changes coming under Making Tax Digital for Income Tax (MTD), despite the new rules beginning to take effect from April 2026. With reporting requirements changing significantly, now is the right time to understand what’s ahead and how to prepare.
Recent research suggests that only one in eight landlords fully understands Making Tax Digital, yet the majority are concerned about how it will affect them. At Barton Wyatt, we are already speaking with landlords who are unsure where to start – so, you’re certainly not alone.
If you are a landlord and unsure how Making Tax Digital will affect you, now is a good time to start finding out what the changes mean in practice. Whether you manage one property or several, understanding your responsibilities early can make the transition far more straightforward.
If you have any questions or would like to receive guidance on Making Tax Digital, get in touch with us today. You can visit our website, call us on 01344 843000, or email our team to discuss the next steps.
If you are also looking to sell or invest in property, take a look at our latest properties for sale in Virginia Water and the Wentworth Estate. Our team can provide advice and support whether you’re planning a move, expanding your portfolio, or exploring investment opportunities.
What Making Tax Digital means for landlords
From April 2026, landlords with qualifying income of over £50,000 will need to submit quarterly updates to HMRC via MTD-compatible software, rather than just completing an annual Self Assessment. These updates will include:
- Rental income received
- Expenses incurred related to your properties
- Profit or loss calculations for the period
At the end of the tax year, a final declaration will reconcile all income, including other sources such as dividends, interest, or pensions.
Even if you currently manage your accounts manually or through spreadsheets, early preparation will make compliance much easier and reduce the risk of mistakes.
From 6 April 2027, the MTD income threshold reduces to £30,000, and further to £20,000 from 6 April 2028, meaning almost all landlords will need to comply with the new system.
Benefits of preparing early
Preparing for MTD can feel daunting, but there are clear advantages:
- Simplified record-keeping: digital records make your income and expenses easy to track and access.
- Greater accuracy: MTD-compatible software reduces human errors, lowering the risk of penalties.
- Better financial management: quarterly updates provide real-time insight into income and tax liabilities, helping with cash flow planning.
- Efficiency and peace of mind: digital submissions are quicker and more streamlined, freeing up time for you to focus on your properties.
- Planning ahead: access to up-to-date figures helps landlords make informed decisions for investments and property management.
Practical steps for landlords
Azets, our trusted accountancy partners, have outlined practical steps to help landlords prepare for Making Tax Digital:
- Confirming whether your income meets the MTD threshold for your phase.
- Digitising records for all income and expenses, including receipts and invoices.
- Choosing HMRC-approved MTD software suitable for your business.
- Maintaining records regularly, ideally monthly or quarterly, to avoid last-minute stress.
- Seeking professional advice to set up your systems correctly and ensure compliance.
If you would like to receive the full Azets PDF guide to Making Tax Digital for Income Tax, get in touch with our team today. We can provide the guidance and help you prepare for the changes.
Get in touch
If you would like more information about Making Tax Digital for landlords, a member of our team will be happy to help. Get in touch with us today to discuss what the changes could mean for you and how best to prepare. You can call us on 01344 843000, or email us.
If you are also looking to sell or invest in property, take a look at our Latest properties for sale in Virginia Water and the Wentworth Estate. Whether you’re planning a move, expanding your portfolio, or exploring investment opportunities, our team can provide advice and guidance tailored to your goals.
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