Making Tax Digital for Landlords — What It Is, Who It Affects Right Now, and What to Actually Do
If you've heard the phrase "Making Tax Digital" and quietly hoped it didn't apply to you — this edition is for you.
HMRC is digitising the entire tax system and landlords are right in the crosshairs. Here's everything you need to know in plain English.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax Self Assessment — known as MTD for ITSA — replaces the traditional annual Self Assessment tax return with quarterly digital submissions to HMRC.
Instead of filing once a year by 31 January, you'll submit a digital update to HMRC every three months showing your income and expenses, then a final end of year declaration.
The key word is digital — spreadsheets emailed to your accountant no longer cut it. You need HMRC-compatible software.
Does it apply to you right now?
Yes — if your gross income from property is over £50,000 per year.
The rollout works like this:
April 2026 — Landlords earning over £50,000 gross property income must comply now
April 2027 — Drops to £30,000 gross property income
April 2028 — Expected to drop to £20,000
Important: this is gross income — your total rent collected before any expenses. Not profit. A landlord collecting £55,000 in rent but spending £20,000 on maintenance is still caught by the £50,000 threshold.
What if you're under £50,000 right now?
Don't ignore it. If your threshold drops to £30,000 in April 2027 you have less than 12 months to get compliant. Getting your software set up now means no scramble later.
What do you actually need to do?
Step 1 — Check if you're affected Add up your total rental income for the last tax year. If it's over £50,000 gross you need to act now.
Step 2 — Choose MTD-compatible software HMRC won't accept manual records or standard spreadsheets. You need software on HMRC's approved list. The main options for landlords:
Hammock — built specifically for landlords, connects to your bank, auto-categorises rental income and expenses. Probably the cleanest option if you self-manage. Around £20/month.
Landlord Studio — good for portfolio landlords, tracks properties individually, generates MTD-ready reports. Around £12–£24/month depending on portfolio size.
QuickBooks — more general accounting software but MTD compliant and widely used. Around £15/month. Better if you have a mix of rental and other self-employment income.
Xero — similar to QuickBooks, more accountant-friendly. Good if your accountant already uses it. Around £16/month.
Step 3 — Register for MTD with HMRC You need to sign up through your Government Gateway account before you can start submitting. Go to gov.uk and search "sign up for Making Tax Digital for Income Tax."
Step 4 — Start keeping digital records from day one Every rental payment received, every expense paid — it needs to go into your software as it happens. Not at the end of the quarter. Not in January. As it happens.
What are the quarterly deadlines?
Once registered your four quarterly submission deadlines are:
5 August — for the quarter ending 5 July
5 November — for the quarter ending 5 October
5 February — for the quarter ending 5 January
5 May — for the quarter ending 5 April
Miss these and HMRC issues penalty points — accumulate enough and you face financial penalties.
The one thing most landlords get wrong
They think MTD is just about filing. It isn't. The bigger shift is record keeping — every transaction needs to be digitally recorded as it happens throughout the year.
Landlords who leave it to their accountant at year end will find their accountant either can't help or charges significantly more for the extra quarterly work.
Get the software, connect your bank account, and let it run in the background. That's genuinely all most landlords need to do.
Action checklist for this week
✅ Calculate your gross rental income for 2024/25 ✅ If over £50,000 — sign up for MTD on gov.uk today ✅ Choose one of the software options above and set it up ✅ Connect your bank account to the software ✅ Book 15 minutes every month to review transactions
Coming up
On Monday we're covering the new possession grounds under the Renters' Rights Act — what replaced Section 21, how Section 8 works now, and the exact grounds you can use to reclaim your property.
If this was useful, forward it to a landlord you know.
The Landlords Brief is published every Monday and Thursday. Subscribe or read past editions at https://samuels-newsletter-7942f6.beehiiv.com/ . This newsletter is for general information only and does not constitute legal or financial advice.
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