That’s why we’ve developed myRental Accounts software – an intuitive, HMRC-recognised solution designed by accountants who are also property owners.
Navigating the evolving tax landscape can be challenging for landlords, to help we’ve put together some Frequent Questions to start you on your MTD journey:
MTD for Income Tax Self Assessment (ITSA) is a government initiative designed to transform the tax system by integrating digital tools. The goal is to make tax administration more effective, efficient, and easier for taxpayers. For landlords, this means maintaining digital records of your property income and expenses and submitting updates to HMRC on a quarterly basis.
Under MTD for ITSA, instead of the traditional annual tax return, you’ll submit four quarterly updates and a final declaration each tax year. This approach offers a more real-time view of your tax obligations, helping you manage your finances proactively.
Step 1: Choose the right software
Get in touch today to learn more about our HMRC recognised software, myRental Accounts – helping you streamline the reporting process.
Step 2: Maintain Digital Records
Keep thorough digital records of all rental income and expenditures. This not only aids in compliance but also provides clarity on your property’s financial performance.
Step 3: Stay Informed
Tax regulations can change. As your expert property accountants, it is our role to ensure we are up to date with all the latest regulations and advise you accordingly.
Yes, despite multiple delays, MTD is very much going ahead. Originally announced in 2015, it has already been rolled out for VAT, and from April 2026, landlords earning over £50,000 will need to comply. By 2027, those earning over £30,000 will also be included. The threshold is lowered again in 2028 to £20,000. The Government reaffirmed this timeline in the Spring Budget 2025, and we expect no further postponements.
MTD means keeping digital records, submitting quarterly updates to HMRC, and filing a final declaration at the end of the tax year. All data transfers must be done digitally using approved software—paper records and manual submissions won’t cut it anymore.
No, tax payment dates will remain the same. Under MTD, you’ll still need to pay your tax bill by 31st January following the tax year, with payments on account due by 31st January and 31st July, if applicable.
MTD will add extra admin for many landlords, but you don’t have to tackle it alone. As specialist landlord accountants, we’re here to guide you through the process, helping you stay compliant while keeping your tax bill as low as possible. Whether you need advice on software, record-keeping, or tax planning, we’re with you for the journey.
Making Tax Digital (MTD) will apply to self-employed individuals and landlords whose total income from property and/or self-employment exceeds the set threshold. This is based on your gross income—before any expenses are deducted.
The date you’ll need to start following MTD rules depends on how much you earn from property and self-employment combined (before expenses):
HMRC are also reviewing the plans for those earning under £20,000, however, nothing yet has been confirmed.
Things are changing, and we’re keeping a close eye on updates. Need clarity on where you stand? Get in touch—we’re here to help you prepare, every step of the way.
If your total property and self-employment income is below the MTD threshold, you won’t need to sign up. Check out our ‘Who’s In and When’ guide for more details.
You’ll also be automatically exempt if you don’t have a National Insurance number on 31st January before the tax year in question—no need to apply, it happens automatically.
If you’re digitally excluded—for example, due to age, disability, or where you live—you can apply for an exemption. HMRC hasn’t yet confirmed the exact process for this, but we’ll update you as soon as details are available.
Trustees, executors, and personal representatives handling deceased estates can also apply for an exemption from MTD. More details can be found on GOV.UK.
HMRC will look at the most recent tax return filed before MTD kicks in to determine if you need to comply. For example, if your 2024/25 tax return (due by 31st January 2026) shows a total income of over £50,000, you’ll need to join MTD from April 2026. If your income is over £30,000, you’ll be required to comply from April 2027.
To check if you meet the £30,000 or £50,000 thresholds, HMRC will look at specific sections of your Self Assessment return, including:
These figures will be added together, and if they exceed the threshold, you’ll be mandated into MTD from the next tax year following your return submission.
If you start earning self-employment or rental income partway through the tax year, HMRC may adjust your income to reflect a full 12 months.
For example, if you start self-employment in January 2025 and earn £10,000 per month, your 2024/25 return will show £30,000 (for three months). But when annualised over a year, that equals £120,000—well above the threshold—so you’d need to comply with MTD from April 2026.
HMRC has indicated that in some cases—such as seasonal businesses—an alternative approach may be used, but details are yet to be confirmed.
If you own a property jointly, only your share of the rental income is considered for MTD.
For instance, if you and your spouse own a property generating £24,000 in rental income per year, you’ll each have a qualifying income of £12,000—which is below the MTD threshold.
No—income that isn’t included on your tax return won’t count towards the MTD threshold.
If you think you might qualify or need guidance on your MTD obligations, we’re here to help. Get in touch today—we’re with you for the journey.
If you’re signed up for Making Tax Digital (MTD), you’ll need to keep digital records of all your income and expenses related to your property and/or self-employment. This includes:
These categories will match those on current Self Assessment returns, so it should feel familiar.
UK Landlord Tax has developed our own software called MRA (myRental Accounts), created by accountants who are also landlords – so we understand exactly what you need.
Get in touch today to find out about MRA software to ease the MTD journey
Under Making Tax Digital (MTD), you’ll need to send quarterly summaries of your rental income and expenses directly to HMRC using digital records.
No—these updates aren’t full tax returns. They’re simple summaries of your income and expenses, with no need for tax calculations or adjustments (unless you choose to). You’ll still submit a final declaration at the end of the tax year to confirm everything is accurate.
By default, the quarters cumulatively align with the tax year, so:
You’ll need to submit separate quarterly updates for each—so if you have both a rental business and self-employment, you’ll need to file eight updates per year.
Quarterly updates are cumulative, so if you spot an error, just correct it in the next submission—there’s no need to panic. You’ll also need to update your digital records to keep everything accurate.
Each update must be submitted by the 7th of the month following the quarter-end. For example, your first submission (Q1) will be due by 7 August.
Need help staying on top of MTD reporting? We’re here to guide you—get in touch today!
Yes, but it will look a little different. After submitting your fourth and final quarterly update, you’ll need to file a ‘digital tax return’—essentially the MTD version of a Self Assessment return.
The difference? Your income and expenses from the year will already be pre-filled from your quarterly updates. You’ll then need to review and adjust the figures for tax purposes—such as removing any private expenses or capital costs that cannot be claimed.
If you have income outside your property or business, like bank interest, salary, or pensions, this will also need to be included. The good news is that HMRC plans to pre-populate some of this data, so in many cases, you’ll just need to check and confirm the figures.
This is also where you’ll claim tax reliefs, such as pension contributions and any other allowances.
The key takeaway? While the process is changing, the essentials remain the same—you’ll still need to review and finalise your tax position each year.
Not sure what adjustments to make? We’re here to help—get in touch today.
If you own a property jointly, you only need to keep digital records and submit updates for your share of the income and expenses—not the full amount for the whole property.
You have two options for recording income and expenses from jointly owned properties:
Again, you can choose how detailed you want your quarterly updates to be:
If your property income is below the VAT registration threshold, you might also be able to use Three-Line Accounts for simplified reporting.
Not sure which method works best for you? We’re here to help—get in touch today.
