Prepare Your Rental Income for Making Tax Digital
From April 2026, many landlords must comply with Making Tax Digital for Income Tax Self Assessment (MTD ITSA). Our accountants help you set up HMRC-approved digital software, manage quarterly updates, and handle Self Assessment reporting.
April 2026 โ Over ยฃ50,000 Rental Income
Landlords earning above this threshold must be fully MTD compliant. Quarterly submissions begin from this date.
April 2027 โ Over ยฃ30,000 Rental Income
The second phase brings more landlords into scope. Planning ahead now avoids last-minute compliance pressure.
What is Making Tax Digital for Landlords?
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is a new HMRC system requiring landlords to maintain digital records of rental income and expenses and submit updates throughout the year.
Digital Records
All rental income and allowable expenses must be kept digitally using HMRC-approved software.
Quarterly Updates
Four quarterly submissions to HMRC per year replace the traditional single annual Self Assessment.
Final Declaration
A year-end Self Assessment declaration confirms your total tax position with HMRC.
How MTD Changes the Way Landlords Report Tax
Instead of filing one annual Self Assessment return, landlords must follow these steps throughout the year:
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1
Keep Digital Records of Rental Income
Every rental payment and property expense must be recorded digitally using compliant software.
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2
Use HMRC-Approved MTD Software
Your bookkeeping must be done through software that is recognised and approved by HMRC for MTD submissions.
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3
Submit Quarterly Updates to HMRC
Four times a year, a summary of your rental income and expenses is submitted directly to HMRC.
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4
File a Final Self Assessment Declaration
At year end, a final declaration confirms your total tax liability for the year.
When Does MTD Apply to Landlords?
HMRC is introducing Making Tax Digital for Income Tax in phases. Preparing early ensures your rental income records and digital systems are ready before the deadlines arrive.
April 2026 โ Landlords Earning Over ยฃ50,000
If your total annual rental income exceeds ยฃ50,000, you must be fully MTD compliant from April 2026. Software must be live and quarterly submissions must begin from this date.
April 2027 โ Landlords Earning Over ยฃ30,000
Landlords with annual rental income above ยฃ30,000 must comply from April 2027. Even if this phase applies to you, starting preparations early avoids costly last-minute transitions.
April 2026 โ Landlords Earning Over ยฃ50,000
If your total annual rental income exceeds ยฃ50,000, you must be fully MTD compliant from April 2026. Software must be live and quarterly submissions must begin from this date.
April 2027 โ Landlords Earning Over ยฃ30,000
Landlords with annual rental income above ยฃ30,000 must comply from April 2027. Even if this phase applies to you, starting preparations early avoids costly last-minute transitions.
How Majestic Accountants Helps Landlords
Our accountants help landlords manage the full Making Tax Digital process for rental income โ from initial setup through to ongoing quarterly submissions and Self Assessment filing.
MTD Software Setup
We configure HMRC-approved Making Tax Digital software specifically for landlords managing rental income and property expenses, ensuring everything connects correctly with HMRC from day one.
Digital Bookkeeping for Rental Income
Your rental income and allowable expenses are maintained digitally throughout the year, ensuring HMRC compliance and giving you a clear picture of your property finances at all times.
Quarterly MTD Submissions to HMRC
We prepare and submit all four quarterly updates to HMRC accurately and on time. You'll never miss a deadline or face penalties for late submissions.
Self Assessment Tax Return Preparation
We handle your end-of-year Self Assessment declaration, confirming your total tax liability and ensuring you remain fully compliant with HMRC rules.
Why Work With an MTD Accountant?
Working with an experienced MTD ITSA accountant helps ensure your rental income reporting stays fully compliant with HMRC rules โ without the stress or risk of penalties.
Accurate Digital Records for Property Income
Clean, HMRC-ready records of rental income and expenses maintained throughout the year.
Reduced Risk of Penalties
Proactive management of every quarterly submission and HMRC deadline keeps you protected.
Professional Tax Guidance
Expert advice on allowable expenses, tax efficiency, and property income reporting.
Ongoing Compliance Support
Year-round support as HMRC rules evolve and your property portfolio grows or changes.
Majestic Accountants supports landlords across the UK with MTD compliance and rental income reporting โ so you can focus on your properties, not your paperwork.โ Majestic Accountants, London
Get Your Rental Income Ready for Making Tax Digital
What is MTD for landlords?
Do landlords need to follow Making Tax Digital?
Yes. Landlords whose rental income exceeds HMRC thresholds โ ยฃ50,000 from April 2026 and ยฃ30,000 from April 2027 โ must comply with MTD ITSA rules and submit quarterly digital updates to HMRC.