Landlords: MTD for Income Tax Is Changing How You Report Your Rental Income
If you’re a landlord, tax admin has probably never been your favourite part of the job. But from April 2026, how you report your rental income to HMRC is fundamentally changing — and if your rental income (or combined rental and self-employment income) exceeds £50,000, you’ll be among the first affected.
What’s Changing for Landlords?
Under Making Tax Digital for Income Tax (MTD ITSA), landlords who fall within the thresholds must send quarterly updates to HMRC, followed by the annual Self Assessment return. You’ll need to:
• Keep digital records of all rental income and allowable expenses
• Submit quarterly updates to HMRC through MTD-approved software
• Continue filing your Self Assessment tax return as normal each January
Does It Apply to You?
MTD for Income Tax applies where your combined gross qualifying income from property and/or self-employment exceeds the threshold. Here’s how it phases in:
| Gross Income | Applies From | Status |
|---|---|---|
| Over £50,000 | 6 April 2026 | Act now |
| Over £30,000 | 6 April 2027 | Plan ahead |
| Over £20,000 | 6 April 2028 | Subject to legislation |
HMRC will use your 2024/25 Self Assessment return to assess your position for the April 2026 wave. If in doubt, check with your accountant or review your return in your HMRC online account.
Choosing the Right Software
You’ll need HMRC-approved MTD software to submit your quarterly updates. Popular options include Sage, Xero, and QuickBooks. Spreadsheets can still be used for record-keeping, but must be digitally linked to compliant software to enable submissions.
The key is choosing something you’ll actually use. If you manage properties yourself, a simple cloud-based tool that syncs with your bank account could save you hours every quarter.
What Landlords Should Do Before April 2026
1. Review your 2024/25 rental income — over £50,000 gross means you’re in the first wave
2. Research and sign up to MTD-compatible software
3. Get your records digital — all income and expenses logged
4. Speak to an accountant or tax adviser to plan your transition
Preparation now means a smooth first quarter. Start now.
The Bottom Line
MTD for Income Tax is a significant change for landlords — but it’s also an opportunity to get on top of your property finances in real time. With the right tools, quarterly reporting can give you a much clearer picture of your rental business throughout the year. Don’t wait. April 2026 is approaching fast.
Not sure where you stand?
We’re helping landlords across Yorkshire prepare for MTD right now. One conversation is usually all it takes.
Speak to an Adviser