Landlord’s Guide to Making Tax Digital for Income Tax: What You Need to Do Now
The UK tax system is undergoing one of its most significant changes in decades, and for property owners, the shift is no longer theoretical. MTD for landlords is moving from consultation to reality, and many landlords are still unsure how it applies to them, when it starts, and what practical steps they need to take.
For reliable, friendly guidance, speak with our team today. Call us on 01706 225 617 or email enquiries@uk-ccm.com to discuss details about the MTD today.
As Chartered Accountants, we support landlords across the UK with compliant, forward-looking tax advice. We understand that tax compliance should never feel overwhelming or rushed.
MTD for landlords: How we can support
At Carter, Collins & Myer, we work closely with landlords across the UK, from single property owners to those with complex portfolios. This guide is designed to explain what Making Tax Digital means for landlords, how the new rules will work in practice, and how to prepare calmly and correctly.
Whether you manage one rental property or several, understanding your obligations early will save time, reduce risk, and prevent unnecessary stress later.
What Is Making Tax Digital for landlords?
Making Tax Digital for landlords is part of HMRC’s wider initiative to modernise the UK tax system by replacing annual paper-based reporting with digital record keeping and more frequent submissions.
Under this framework, landlords will be required to:
- Keep digital records of rental income and allowable expenses
- Use compatible software to submit updates to HMRC
- Report income more frequently rather than once a year
The intention behind the change is to improve accuracy, reduce errors, and give taxpayers a clearer picture of their tax position throughout the year. For landlords, however, this represents a significant shift in how rental income is managed and reported.
MTD for Income Tax landlords and MTD ITSA explained
Understanding MTD for Income Tax landlords
MTD for Income Tax landlords specifically applies to those who currently file a Self Assessment tax return for rental income. This includes landlords earning income from:
- UK residential property
- Furnished holiday lets
- Jointly owned rental properties
Instead of submitting one annual return, landlords will provide quarterly updates using digital software, followed by an end-of-period statement and final declaration.
What is Making Tax Digital Income Tax Self Assessment (MTD ITSA)?
Making Tax Digital Income Tax Self Assessment (MTD ITSA) is the formal name HMRC uses for this new reporting system. While the terminology can sound technical, the practical impact is straightforward. Landlords must move from manual records and spreadsheets to approved digital systems that communicate directly with HMRC.
We help our clients translate this HMRC language into plain English, ensuring they understand not only what is required, but how to implement it correctly.
When does Making Tax Digital start for landlords?
One of the most common questions we hear is, when does Making Tax Digital start for landlords?
Based on current HMRC guidance:
- From April 2026, landlords with qualifying income over £50,000 will be required to comply
- From April 2027, the threshold reduces to £30,000
- A later phase is expected for those earning over £20,000, subject to confirmation
These thresholds refer to total gross income from self-employment and property combined, not profit.
While these dates may seem distant, preparation should begin well in advance. Digital record keeping is not something to leave until the final months.
Do landlords need to register for Making Tax Digital?
Registration obligations explained
A frequent concern is whether landlords must actively sign up. The short answer is yes. Do landlords need to register for Making Tax Digital? If they meet the income thresholds and fall within scope, registration is mandatory.
HMRC will not automatically migrate landlords into the system. Registration involves:
- Choosing compliant software
- Linking records to HMRC systems
We guide landlords through this process to ensure nothing is missed and that registrations are completed correctly and on time.
MTD software for landlords UK: what actually works
Choosing MTD software for landlords UK compliance is not simply a technical decision. It affects daily workflows, record accuracy, and long-term compliance.
Key features to look for
- HMRC recognition and compatibility
- Ability to track rental income and expenses clearly
- Quarterly submission functionality
- Secure data storage and reporting
Not all landlords need the same solution. A single-property landlord will have very different requirements compared to someone managing multiple properties or joint ownerships. We help our clients select software that fits their situation, rather than forcing unnecessary complexity.
How MTD for landlords changes day-to-day tax managemen
The biggest adjustment under MTD for landlords is behavioural rather than technical. Instead of scrambling once a year, landlords will:
- Maintain ongoing digital records
- Review income and expenses quarterly
- Gain better visibility of tax liabilities throughout the year
| Aspect | Traditional Self Assessment | Making Tax Digital |
| Record keeping | Manual or spreadsheet | Digital only |
| Submissions | Annual | Quarterly plus final |
| Software required | Optional | Mandatory |
| Tax visibility | End of year | Ongoing |
This change often improves control and accuracy when implemented properly, particularly with professional oversight.
Common mistakes landlords should avoid
Without guidance, landlords risk:
- Using non-compliant software
- Missing quarterly submission deadlines
- Recording income inconsistently
- Confusing profit with turnover thresholds
Our role is to ensure compliance while protecting our clients from avoidable penalties and administrative errors.
Why professional guidance matters under MTD for Income Tax landlords
Making the shift alone can be risky. MTD for Income Tax landlords is still evolving, with HMRC guidance continuing to develop.
At Carter, Collins & Myer, we:
- Advise landlords on eligibility and timing
- Manage digital record structures
- Review quarterly submissions
- Provide strategic tax planning alongside compliance
Our experience supporting UK taxpayers through regulatory change ensures landlords are not simply compliant, but confident.
Final thoughts
MTD for landlords is not simply another administrative task. It represents a structural shift in how rental income is reported and reviewed. Early preparation allows landlords to adapt smoothly, avoid disruption, and gain better control over their tax affairs.
If you would like tailored advice on MTD for landlords, speak to our team today and prepare with confidence rather than urgency; call us on 01706 225 617 or email enquiries@uk-ccm.com .
FAQs: MTD for landlords
What income level triggers MTD for landlords?
Landlords with qualifying income above HMRC thresholds will need to comply, based on gross income, not profit.
Is Making Tax Digital for landlords mandatory?
Yes, once a landlord meets the criteria, participation is compulsory.
Can accountants submit reports on a landlord’s behalf?
Yes. With proper authorisation, we can manage submissions and reporting entirely.
Will tax bills be paid quarterly?
No. Payments remain separate, although future changes are under consultation.
What happens if landlords do nothing?
Failure to comply may result in penalties once the system is live.