In April 2026, some landlords will have to abide by new Making Tax Digital (MTD) requirements. As well as VAT implications, MTD affects Income Tax filing for landlords. This replaces the current income tax Self-Assessment forms.

When is tax going digital?

From 6th April 2026, the introduction of MTD will affect landlords who have a total income of over £50,000. This includes income and expenses from properties and businesses.

For landlords earning over £30,000, they will have to comply from April 2027, and those earning over £20,000 have until 2028. If you receive income from shares in a Real Estate Investment Trust (REIT), this is not included in your total income.

Making Tax Digital requirements

MTD for landlords will require them to keep digital financial records. This will require you to download compatible software and learn how to use it. Therefore, it is a good idea to get familiar with these programs in advance.

If you are a landlord and a self-employed business owner, you must use separate digital filing systems. Use one for business finances and one for property finances.

You will also be required to send quarterly financial updates to HMRC with information on your business income and expenses. The deadlines for these updates are the 7th of August, November, February, and May.

Lastly, you will have to digitally declare your annual income from the tax year to HMRC. The deadline for this, and for payment, is 31st January the following year. When you digitally declare your income, you also have the opportunity to include pertinent details about personal income or tax relief.

J Sweeney Accountants can help you apply and manage your income tax digitally according to the upcoming MTD changes. This allows you to stay ahead of the game and be knowledgeable about correct financial procedures. To learn more, get in touch by emailing [email protected] or calling 01604 950034.