If you earn income from UK or overseas property, whether that's residential lettings, furnished holiday lets or commercial premises, the way you report that income to HMRC is changing. From April 2026, Making Tax Digital (MTD) for Income Tax will apply to many landlords, and it's essential to start preparing now.

What is MTD for Income Tax?

MTD is part of the government's plan to modernise the UK tax system. Many business owners will be familiar with MTD for VAT, which has been rolled out to VAT registered businesses since 2019.

The next phase of MTD focuses on Income Tax Self Assessment for the self-employed and property landlords. Company directors, who are technically not self-employed but do have additional Self Assessment income from property rentals (or other non-PAYE income), will also be caught by the new rules.

The aim is to make tax reporting more accurate, reduce errors and give HMRC a clearer picture of your income throughout the year.

When does MTD for Income Tax apply to landlords?

MTD for Income Tax comes into effect from 6 April 2026 for individuals with total gross income from self-employment and/or property above £50,000 per year.

From April 2027, it extends to those earning more than £30,000, and those earning £20,000 or more will need to join the scheme from April 2028.

So, if your property income alone exceeds £50,000 a year, you'll need to follow the MTD rules from 2026. If you also have a self-employed business, HMRC will combine both sources of income when checking the threshold.

What will landlords need to do to comply with MTD for Income Tax?

To comply with MTD for Income Tax, you'll need to:

  • Keep digital records of your property income and expenses
  • Use HMRC-recognised software to record and submit your property income and expenses
  • Send quarterly updates to HMRC
  • Submit an end-of-year final declaration (tax return)

If you receive income from property as well as another self-employed business or trade, you will have to submit separate digital records for each source of income.

While you can no longer submit paper tax returns or keep manual records of your income and expenses, you will be able to use spreadsheets, provided these can digitally link to HMRC's MTD for Income Tax platform, using MTD bridging software.

What are the submission deadlines for MTD for Income Tax?

MTD for Income Tax operates on a tax year basis, beginning on 6 April each year. This means all self-employed and landlord taxpayers will have the same deadline for submitting their quarterly income and expenses data. These deadlines are:

  • 7th August (for April – June submissions)
  • 7th November (for July – September submissions)
  • 7th February (for October – December submissions)
  • 7th May (for January to March submissions

What about jointly owned property and MTD for Income Tax??

Each owner is responsible for their own MTD reporting. If you jointly own property, you'll need to submit your share of the income through your own MTD software each quarter. However, you will only need to report your share of the property expenses on the final declaration.

What is the final declaration?

Once the tax year ends, you must complete one final step, the final declaration. This digital submission replaces the traditional Self Assessment return and consolidates everything into a single final update to HMRC.

The final declaration requires you to confirm that all the quarterly updates you've submitted throughout the tax year are accurate and complete. Property-related expenses should also be added to the final declaration. It's also the point where you must report any other personal income or tax reliefs that haven't been included so far.

31 January deadline

Just like the current Self Assessment system, the deadline for submitting the final declaration and paying any tax due is 31 January following the end of the tax year. So, for the 2026/27 tax year, the final declaration and payment will need to be made by 31 January 2028.

How DWilkinson&Company are helping landlords get ready

We understand that these changes may feel overwhelming, especially if you're used to managing your property accounts manually or once a year.

At DWilkinson&Company, we're already working with landlords to:

  • Review their current systems and income levels
  • Recommend and help set up MTD compliant software
  • Offer training and support to manage records digitally
  • Provide ongoing bookkeeping services so that everything is submitted on time

Whether you have one rental property or an extensive portfolio, we can help you stay compliant and avoid penalties.

If you're a landlord and unsure how MTD for Income Tax will affect you, get in touch today. We'll explain what the changes mean and how to get ready in good time.