Making Tax Digital (MTD) is one of the most important upcoming changes to Income Tax reporting for landlords.
From April 2026, some landlords will be expected to move away from the familiar annual Self Assessment routine and follow a new digital reporting process instead.
At Parkers Properties, we know landlords value clear, practical information, so here is what matters most.
The key points at a glance
If you only take away a few things, these are the essentials:
- Making Tax Digital begins for some landlords from 6 April 2026
- It applies first to individuals with a qualifying income over £50,000
- Digital record keeping and reporting updates will become part of the yearly routine
- The tax you pay does not change, but the way you submit information will
Many landlords are already reviewing their record-keeping ahead of the rollout.
Why is HMRC introducing this change?
Making Tax Digital is part of HMRC’s wider plan to modernise the tax system.
Instead of landlords submitting information only once a year, the new approach is designed to encourage digital recordkeeping and reduce avoidable errors over time.
This is a change to the reporting process, rather than a change to Income Tax rules themselves.
When does it start, and who is included?
The first stage begins on 6 April 2026.
From that point, landlords must comply if their qualifying income from property and/or self-employment exceeds £50,000 per year.
HMRC has also confirmed the next stages:
- from April 2027: income over £30,000
- from April 2028: income over £20,000 (subject to legislation)
Even if you are not affected immediately, these future milestones will bring more landlords into scope gradually.
What does qualifying income mean in practice?
Qualifying income is based on gross income before expenses are deducted.
For landlords, this means rental income counts in full, and self-employment income may also be included if relevant.
Landlords operating through limited companies are not part of these Income Tax rules, as companies follow Corporation Tax reporting instead.
What will landlords need to do differently?
Under Making Tax Digital, landlords within scope will need to adopt a more consistent reporting routine during the year.
This includes:
- keeping digital records of rental income and allowable expenses
- sending summary updates to HMRC during the tax year
- completing an end-of-year submission to confirm final figures
These updates are not tax bills, but they do mean reporting becomes an ongoing process rather than a single annual task.
Importantly, the payment deadline remains unchanged, with Income Tax still due by 31 January following the end of the tax year.
What about software and accounting support?
HMRC will not provide its own software platform.
Landlords will need to use commercial MTD-compatible software, either managing submissions directly or working with an accountant or adviser.
Deciding what level of support is right for you early on can help the process run smoothly.
A sensible way to prepare now
Preparation does not need to be complicated.
For many landlords, it starts with keeping clear records, ensuring rental statements and expenses are well organised, and reviewing whether current systems are ready for digital reporting.
Taking small steps gradually now can help avoid pressure as April 2026 approaches.
Guidance from Parkers Properties
Making Tax Digital introduces a new reporting process for landlords from April 2026, becoming mandatory for those above the qualifying income threshold.
Parkers Properties supports landlords with professional property management, clear rental documentation, and local guidance to help you stay organised as requirements develop.
If you would like advice ahead of April 2026, speak to your local Parkers team.
