Making Tax Digital for Landlords: Who Qualifies, Key Dates & Compliance Duties (2025/26 Update)

Why MTD is a Game-Changer for Landlords

The UK tax system is moving towards full digitalisation — and landlords are at the centre of this shift. From April 2026, many property owners will no longer be able to file their rental income once a year through Self Assessment. Instead, they will have to keep digital records and submit quarterly updates under the Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA) regime.

These changes will reshape how landlords track income, expenses, and interact with HMRC. Failing to prepare could lead to missed deadlines, penalties, and unnecessary stress.

This guide explains exactly who MTD applies to, when the rules kick in, and what landlords must submit to stay compliant.

Who MTD for Landlords Applies To

From April 2026, MTD applies to:

• Individuals with gross self-employment and/or property income over £50,000.

• From April 2027, this threshold reduces to £30,000.

• HMRC has indicated it may later extend to those with income over £20,000 (expected around 2028).

Companies and trusts are not included in the current roll-out.

What Must Be Submitted Under MTD

Landlords caught by MTD will need to:

• Keep digital records of rental income and expenses.

• Submit quarterly updates to HMRC using MTD-compatible software.

• File an End of Period Statement (EOPS) after the tax year, adjusting for reliefs and allowances.

• Submit a Final Declaration to confirm all income (replacing the current Self Assessment return).

Digital Records: What Counts

Under MTD rules, landlords must maintain digital records of:

• Rental income received.

• Allowable expenses (e.g., repairs, insurance, agent fees).

• Adjustments and reliefs claimed.

These must be recorded in MTD-compliant software — spreadsheets alone are not sufficient unless linked with “bridging software” approved by HMRC.

Key Dates & Deadlines for Landlords

• 6 April 2026 → MTD mandatory for landlords earning over £50,000.

• 6 April 2027 → threshold lowers to £30,000.

• Quarterly submissions → due within one month of each quarter-end.

• EOPS → due 31 January following the tax year.

• Final Declaration → also due 31 January (replacing SA100).

Common Pitfalls Landlords Must Avoid

• Assuming MTD won’t apply → thresholds will gradually capture more landlords.

• Missing quarterly update deadlines → penalties apply from day one.

• Not using the right software → HMRC only accepts data through approved MTD-compatible providers.

• Overlooking joint ownership → thresholds apply to gross income, not net profits.

How Wexley Helps Landlords Transition to MTD

At Wexley & Associates, we:

• Assess whether landlords fall within MTD thresholds.

• Provide MTD-ready digital bookkeeping solutions.

• Handle quarterly submissions and annual statements.

• Offer strategic tax planning to minimise liabilities under the new regime.

Our proactive approach ensures landlords adapt smoothly without risking HMRC penalties.

Prepare for MTD Now, Avoid Stress Later

Making Tax Digital isn’t just a software change — it’s a complete shift in how landlords interact with HMRC. Early preparation means fewer surprises, easier compliance, and more time to focus on property management.

Contact Wexley & Associates today to make sure your property business is fully MTD-compliant ahead of 2026.

References

• HMRC: Making Tax Digital for Income Tax Self Assessment

• HMRC: MTD for landlords eligibility and thresholds

• Related Wex Insider article: Allowable Expenses & Replacement of Domestic Items: What Landlords Can Deduct