24/02/2026
LANDLORDS !
Making Tax Digital (MTD) is one of the most significant changes to the UK tax system.
MTD will directly affect landlords with qualifying rental income.
Who Will Be Affected?
Under MTD ITSA, landlords (and sole traders) will be brought into MTD ITSA based on their qualifying income – the total gross income (turnover) from property and self-employment.
The current timetable applies to those earning more than ÂŁ50,000 from April 2026, with the threshold reducing to ÂŁ30,000 from April 2027.
Instead of submitting a single annual tax return, affected landlords will be required to
⛔️ Keep digital records using MTD-compatible software
⛔️ Submit quarterly updates to HMRC
⛔️ Submit a final declaration confirming total taxable income
Under MTD, records must be kept digitally in compatible software, with digital links between systems, and not by paper.
Quarterly Reporting
Quarterly submissions do not mean quarterly tax payments, but they do require records to be kept up to date throughout the year (and not annually)
Penalties
MTD introduces a new points-based penalty system for late submissions. With multiple deadlines each year, the risk of penalties increases
If you are a landlord who may be affected by Making Tax Digital, now is the time to start preparing. Reviewing your current bookkeeping process and speaking to an adviser early can help ensure you are ready well before the new rules take effect.
If you’re unsure whether MTD will apply to you, or you’d like support choosing software, feel free to contact our office.
[email protected] Corr & Corr
