Making Tax Digital – Landlords
- Making Tax Digital
- Quick Read
Making Tax Digital – Landlords
- Recent Thinking
- Mike Smith
What Landlords Need to Know
Making Tax Digital (MTD) is the UK government’s progressive initiative designed to simplify and modernise tax filing. Through this system, taxpayers—including landlords—move from a traditional annual Self Assessment to digital quarterly updates.
From 6 April 2026, if your combined property and/or business income exceeds £50,000 annually, you’ll be required to comply. Those earning over £30,000 will follow from April 2027, and for those over £20,000, the threshold applies from April 2028.
How MTD Will Change Your Tax Routine
Digitise Your Records
You’ll need to keep digital records of your property income and expenses using HMRC–approved software. We are quite keen on the excellent solution provided by FreeAgent.
Submit Quarterly Summaries
Instead of one annual return, MTD requires four updates per tax year. Deadlines fall on:
– 7 August
– 7 November
– 7 February
– 7 May
You’ll use compatible software to report your earnings and expenses.
Finalise with a Digital Declaration
At the close of the tax year, you submit a Final Declaration via software to confirm accuracy, include any reliefs, and submit your tax—replacing the traditional Self Assessment return. Deadline: 31 January following the tax year.
How CORNEL can make MTD simple for you
| Service Element | What We Do for You |
Software Setup | We help you choose, set up, and use compliant accounting software. |
| Digital Record-Keeping | We ensure your income and expenses are logged cleanly and accurately. |
Quarterly Submission Support | We manage your four tax updates so you’re never late or overwhelmed. |
| Final Declaration Assistance | We prepare and submit your year-end declaration and help you pay any tax due. |
Guidance & Confidence | We keep you informed of deadlines, changes in legislation, and best practices—every step of the way. |
A sneak preview of your MTD timeline
- April 2026 onward – Begin quarterly submissions if your income qualifies.
- Quarterly updates – Sent every August, November, February and May
- 31 January – Submit your Final Declaration and settle your tax.
Frequently asked questions (FAQ)
Does MTD apply if I only have one rental property?
If your total income from property (and any other self-employment) is above the threshold (£50,000 from April 2026, £30,000 from April 2027), then yes—it applies even for just one property.
What happens if my rental income fluctuates and dips below the threshold?
HMRC will assess your income annually. If your income drops below the threshold, you may no longer be required to submit under MTD in future years.
Can I still use spreadsheets?
Yes, but they must be linked to HMRC-compatible bridging software to file your updates digitally.
Will I still need to do a Self Assessment?
No—the Final Declaration under MTD replaces the Self Assessment return, but it works in a similar way by confirming your year’s income and expenses.
What software will I need?
We can help you select HMRC-approved software such as FreeAgent, Xero, or QuickBooks, depending on your needs.
What if I have both self-employed income and rental income?
Your total combined income from both sources is used to check if you meet the MTD threshold—and both will need to be reported digitally.
Ready to stay ahead of the curve?
Why not get in touch with CORNEL today. We’re here to make your transition to Making Tax Digital seamless – and keep your property finances compliant, accurate and stress-free.
Credits and thanks: FreeAgent (Resources)
Disclaimer:
The content included in this blog post is based on our understanding of tax and company law at the time of publication. It may be subject to change without notice and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included in this post or guide.
