What Is Making Tax Digital for Landlords? The Complete 2026 Guide
- My Property Organiser
- 20 hours ago
- 3 min read
Making Tax Digital (MTD) is the UK government’s initiative to modernise the tax system. From April 2026, many landlords and property investors will be required to:
Keep digital records of income and expenses
Submit quarterly updates to HMRC
File a Final Declaration instead of a traditional annual Self Assessment
If you earn over £50,000 from property or self-employment, MTD for Income Tax Self Assessment (MTD ITSA) will apply from April 2026.
For property investors, this isn’t just a compliance change. It’s a structural shift in how portfolios must be managed.
What Does Making Tax Digital Actually Mean?
Historically, landlords submitted one annual Self Assessment tax return.
Under MTD for landlords, that changes.
Instead of one large annual submission, you must:
Maintain continuous digital bookkeeping
Submit income and expense updates every quarter
Finalise your tax position at year end
This transition from annual reporting to real-time digital compliance is one of the biggest changes to UK property taxation in decades.
The Three Core Requirements of Making Tax Digital
1. Digital Record-Keeping
You must keep digital records of:
Rental income
Mortgage interest
Repairs and maintenance
Letting fees
Insurance
Utilities
Professional fees
Paper receipts and spreadsheets alone will no longer be sufficient unless connected through MTD compatible software such as My Property Organiser.
(For serious investors with multiple properties, manual bookkeeping becomes operationally risky)
2. Quarterly Updates to HMRC
You must submit quarterly summaries of income and expenses through MTD-compatible accounting software.
Typical submission periods:
Quarter | Period | Deadline |
Q1 | 6 April – 5 July | 7 August |
Q2 | 6 July – 5 October | 7 November |
Q3 | 6 October – 5 January | 7 February |
Q4 | 6 January – 5 April | 7 May |
3. End of Period Statement & Final Declaration
After your four quarterly submissions, you must:
Submit an End of Period Statement (EOPS
Submit a Final Declaration (replacing the current Self Assessment process)
The final deadline remains 31 January following the end of the tax year.
Is Making Tax Digital Compulsory for Landlords?
Yes. MTD for Income Tax is being introduced in phases.
From 6 April 2026 - Landlords and self-employed individuals earning over £50,000
From 6 April 2027 - Those earning between £30,000 and £50,000
From 6 April 2028 (proposed) - Those earning between £20,000 and £30,000
(Important: The threshold applies to total combined income, not per property.
A landlord with five modest properties could easily exceed the threshold once combined.)
What Income Does MTD Apply To?
Covered by MTD
UK property rental income
Self-employment income
Joint property ownership (individual share applies)
Non-resident landlords with UK rental income
Not Covered
Limited companies (Corporation Tax rules apply separately)
PAYE employment income
Income below the MTD thresholds
For joint property owners, MTD applies to each individual’s share of the income.
Can You Opt Out of Making Tax Digital?
Some landlords may qualify for exemption if it is not reasonable or practical to use digital systems due to:
Age
Disability
Religious grounds
Applications must be made directly through HMRC.
For most investors, however, MTD compliance will be mandatory.
How Property Investors Should Prepare for Making Tax Digital...
Step 1: Assess Your Total Income
Calculate your combined rental and self-employment income to determine your implementation date.
Step 2: Choose MTD-Compatible Software
You must use accounting software that connects directly to HMRC’s MTD system.
But here is the key distinction.
Basic bookkeeping software records transactions.
Strategic investors require portfolio-level visibility.
Step 3: Digitise and Automate
You need:
Automated bank feeds
Transaction categorisation
Digital receipt storage
Quarterly submission capability
Clear profit and cashflow visibility
If you are still reconciling spreadsheets manually, MTD will expose operational weaknesses.
How My Property Organiser Supports Making Tax Digital Compliance - My Property Organiser is designed for property investors who want full visibility, not just tax filing.
Within our Accounting & MTD framework, investors can:
✓ Maintain compliant digital income and expense records✓ Sync transactions securely
✓ Categorise costs in HMRC-ready formats
✓ Prepare quarterly submission data
✓ Track portfolio-level performance in one dashboard
Unlike generic accounting tools, My Property Organiser connects tax compliance to:
Portfolio equity tracking
Asset performance visibility
Cashflow forecasting
AI-driven financial insights
Making Tax Digital(MTD) should not be a stress point. It should strengthen control over your wealth structure.
The Bottom Line
Making Tax Digital is not optional for most landlords from April 2026 onwards.
It replaces annual tax reporting with quarterly digital compliance and structured record-keeping.
For small landlords, it means increased admin and for serious investors, it means professionalising your portfolio.
If you want to understand how this integrates into your wider property wealth strategy, explore our full Accounting & Making Tax Digital guide on My Property Organiser.
