The way landlords report rental income to HM Revenue & Customs (HMRC) is entering a new phase.
From April 2026, Making Tax Digital (MTD) will introduce a new digital way of keeping records and reporting property and self-employment income, alongside end-of-year tax return submission through compatible software. Instead of relying solely on one annual Self Assessment process, landlords within scope will need to follow a more structured approach throughout the tax year.
Although the changes are being introduced gradually, the first stage is close enough that landlords should begin reviewing their processes now.
This guide explains the key points of Making Tax Digital and how property owners can stay organised ahead of the April 2026 rollout. Before looking at the thresholds and deadlines, it helps to understand what MTD will actually involve for landlords.
Making Tax Digital in simple terms
Making Tax Digital for Income Tax is a new HMRC initiative designed to modernise the way income is reported.
For landlords, the change is less about the tax you pay and more about how rental income and expenses are recorded and shared with HMRC. MTD does not change how tax is calculated, but it does change how income information is provided during the year.
In practice, landlords who meet the criteria will be expected to:
- Maintain property income and expense records in a digital format
- Provide updates to HMRC at regular points during the year
- Confirm final figures after the tax year ends
The aim is to reduce errors and create a more streamlined reporting process over time.
The April 2026 threshold landlords need to know
MTD for Income Tax will apply first to landlords with higher qualifying income.
From 6 April 2026, landlords must use the new system if their combined qualifying income from property and/or self-employment exceeds £50,000 per year.
HMRC has confirmed that the threshold will be reduced in later years:
- April 2027 — income over £30,000
- April 2028 — income over £20,000 (subject to legislation)
This staged approach means that many landlords who are not affected immediately may fall within scope in the near future, making it worthwhile to understand the requirements early.
Who is likely to fall within scope?
Making Tax Digital for Income Tax applies to individuals who are registered for Self Assessment and receive income from:
- rental property
- self-employment
- or a combination of both
The key measure is qualifying income, which refers to total gross income before allowable expenses are deducted.
This change applies to individuals within Self Assessment. Different rules apply to properties held through a limited company.
What changes for rental income reporting?
For many landlords, Making Tax Digital will feel like a shift in routine rather than a change in taxation.
Keeping records in a digital format
Landlords will need to maintain digital records of income and allowable expenses, such as:
- rent received
- repairs and maintenance
- letting agent charges
- other property-related costs
Paper-only systems will no longer meet the requirements once MTD applies.
Regular updates during the tax year
Instead of providing rental income figures only once a year, landlords within scope will send quarterly summary updates through compatible software.
These are typically submitted every three months and help HMRC build a more accurate picture of income and expenses across the year. They are not final tax calculations, but part of an ongoing reporting process.
End-of-year confirmation still remains
After the tax year ends, landlords will complete an end-of-year submission confirming their overall figures.
Making Tax Digital changes how income is reported during the year, but the usual Self Assessment tax payment deadlines will still apply for most landlords.
Software and professional guidance
HMRC will not provide its own software platform for Making Tax Digital.
Landlords will need to use commercial MTD-compatible software that supports rental record management and the submission of required updates.
Some landlords may prefer to manage this directly, while others may choose to work with an accountant or adviser who can oversee reporting on their behalf.
HMRC provides guidance on choosing software depending on the complexity of your income and record-keeping needs.
Preparing now: Practical steps for landlords
Landlords do not need to overhaul everything immediately, but a few early steps can make compliance much easier when the new rules take effect.
Many landlords will find that small adjustments now can prevent complications later, particularly as the reporting process becomes more structured.
It may be helpful to:
- review whether your income exceeds the £50,000 threshold
- Speak with a tax adviser about how MTD applies to your circumstances
- Consider updating your current record-keeping process
- ensure rental statements and expense documentation are well organised
Taking these steps in advance is likely to reduce pressure once the requirements become mandatory.
Supporting landlords through upcoming changes
Making Tax Digital introduces a new way of reporting rental income, with digital systems and quarterly submissions becoming mandatory from April 2026 for landlords above the income threshold.
By putting the right systems in place and keeping records organised, landlords can approach the transition with confidence and remain compliant as the new framework is introduced.
Country Properties can support landlords with professional property management, clear rental documentation, and local guidance to help you stay organised as reporting requirements evolve. With the right systems and support in place, the transition to Making Tax Digital can be straightforward and well-managed.
