Making Tax Digital (MTD) is one of the biggest upcoming changes for landlords who report rental income through Self Assessment. Over the next few years, HM Revenue & Customs (HMRC) will introduce a new digital system for Income Tax reporting, which will gradually replace the traditional annual process.
For many landlords, tax reporting has historically been something handled once a year. Under Making Tax Digital for Income Tax, record keeping and reporting will become more regular, supported through compatible software.
Understanding what is changing now can help landlords stay organised and reduce disruption as the new system comes into force.
A new direction for landlord tax reporting
Making Tax Digital is part of HMRC’s wider plan to modernise the tax system. The aim is to reduce common reporting errors and encourage more accurate record keeping by moving away from paper-based processes.
Rather than landlords gathering information only at the end of the tax year, the new approach is designed to support ongoing digital records throughout the year.
Importantly, this is a change in how income is reported, not a change in how much tax is paid.
When does Making Tax Digital begin?
The first stage of Making Tax Digital for Income Tax begins on 6 April 2026.
From this point, landlords will need to comply if their qualifying income from property and/or self-employment is more than £50,000 per year.
HMRC has confirmed that the threshold will be reduced in later years, meaning more landlords will enter the system gradually. From April 2027, the rules will apply to those earning over £30,000.
From April 2028, the threshold is expected to reduce further to £20,000, subject to legislation.
Even landlords who are not affected immediately may wish to keep these future milestones in mind.
What is meant by “qualifying income”?
Qualifying income refers to gross income from property rental and/or self-employment before expenses are deducted.
For landlords with more than one income stream, this is particularly important, as combined income may bring them within scope sooner than expected.
Landlords operating through limited companies will follow separate Corporation Tax reporting rules, rather than these Income Tax requirements.
How will the process change for landlords?
The most noticeable difference under Making Tax Digital is that reporting becomes a more regular part of the tax year.
Landlords within scope will need to keep digital records of rental income and allowable expenses. They will then submit summary updates to HMRC during the year using approved software.
These updates are not final tax calculations, but they do introduce a more structured reporting cycle than the current annual return.
At the end of the tax year, landlords will still complete an end-of-year submission to confirm their final figures. The deadline for paying Income Tax remains unchanged, with tax still due by 31 January following the end of the tax year.
Software and professional support
HMRC will not provide its own software for Making Tax Digital. Landlords will need to use commercial MTD-compatible software instead.
Some landlords may choose to manage reporting directly, while others may prefer an accountant or adviser to handle submissions on their behalf.
Planning early can make it easier to choose the right approach before the rules become mandatory.
Preparing early without unnecessary pressure
Although April 2026 may feel some way off, small steps taken now can make the transition far smoother.
Landlords may find it helpful to review their income level, ensure rental records are well organised, and consider whether their current systems are ready for digital reporting.
Early preparation often helps avoid last-minute stress as deadlines approach.
Local guidance as requirements evolve
Making Tax Digital introduces a new reporting routine for landlords, with digital record keeping and regular updates becoming mandatory from April 2026 for those above the income threshold.
Mullucks supports landlords with clear rental documentation, professional property management, and local guidance to help you stay organised as reporting requirements develop. If you would like advice ahead of April 2026, speak to your local Mullucks branch.
