Landlords and self-employed: Get Ready for MTD for Income Tax from April 2026

 

If you're a landlord or are self-employed with property or business income over £50,000 a year, significant changes are coming your way. From April 2026, you’ll be required to follow the Making Tax Digital (MTD) rules for Income Tax. This will affect how you keep records and submit your tax information to HMRC.

 

What is MTD for Income Tax?

MTD for Income Tax Self-Assessment (ITSA) is part of HMRC’s wider plan to digitise the UK tax system. It will eventually replace the traditional annual tax return for most self-employed individuals and landlords. Instead, you’ll need to keep digital records and send quarterly updates to HMRC using approved software.

 

Who Will It Affect?

From 6 April 2026, MTD ITSA will apply to:

 

  • Individual landlords whose gross property income exceeds £50,000 per tax year. This includes UK and overseas rental income; and
  • Sole traders and partnerships with combined business income over £50,000.

 

HMRC’s instructions regarding who will need to use the MTD service from 6 April 2026 are:

 

You will need to use Making Tax Digital for Income Tax from 6 April 2026 if all of the following apply.

 

·         You are an individual registered for Self-Assessment;

  • get income from self-employment or property, or both, before 6 April 2025; and
  • have a qualifying income of more than £50,000 in the 2024 to 2025 tax year

 

If your income from property and/or self-employment is between £30,000 and £50,000, you’ll be required to join the system from April 2027.

 

Even if you're only just over the threshold, you’ll still be caught by the rules – so now’s the time to start planning.

 

Note: reference to income above mean income before expenses are deducted, not profits.

 

What Do Landlords Need to Do Now?

Although 2026 might seem a way off, preparing early will save stress and allow time to choose the right systems for your needs. Here’s what you can do now:

 

  • Start keeping digital records of rental income and expenses (ideally using cloud-based software).
  • Talk to us about the best digital tools and how quarterly reporting will work.
  • Keep an eye out for software trials and MTD-compatible platforms that suit landlords.

 

Why It Matters

MTD isn’t just an admin change – it’s a shift in how your tax affairs will be managed. Late or inaccurate reporting could lead to penalties, so being ready is crucial.

If you’re unsure whether you’ll be affected or how to start the transition, don’t wait. Call now. Getting advice early will give you the time and clarity you need.