If you’re a landlord, a major change is on the way. From April 2026, HMRC will extend Making Tax Digital (MTD) for Income Tax to those with property income over £50,000.
At North Devon Accounts, we know tax changes can feel overwhelming, so here’s a clear guide to what’s happening, who it affects, and how we can help you get ready.
What is Making Tax Digital?
MTD is HMRC’s plan to modernise the tax system. Instead of one annual Self-Assessment return, landlords will need to:
- Keep digital records of income and expenses
- Send quarterly updates via MTD-compatible software
- Complete a year-end finalisation to confirm figures
The aim? Reduce errors and give taxpayers a clearer view of their position during the year.
Who will be affected?
- From April 2026: landlords with property income over £50,000 (before expenses), including residential, commercial and holiday lets.
- From April 2027: those with qualifying income between £30,000–£50,000.
- From April 2028: those with qualifying income over £20,000.
Important: HMRC looks at your total income from both self-employment and property when deciding if you meet the MTD threshold.
For example:
- If you earn £35,000 from your business and £20,000 in rental income, your combined qualifying income is £55,000.
- Because this is over £50,000, you’ll need to join MTD for Income Tax from April 2026.
So even if each source of income is below £50,000 on its own, you may still be included once they’re added together.
What will change?
- Quarterly submissions instead of one annual return
- Digital record-keeping (no paper or spreadsheets)
- Year-end finalisation replacing Self-Assessment forms
What stays the same:
✔ The 31 January payment deadline
✔ Rules on allowable expenses
What should landlords do now?
- Check your income – will you be over the £50,000 threshold in 2026?
- Explore digital tools – look at MTD-compatible software for landlords.
- Adopt new habits – record income and expenses regularly.
- Seek support – working with an accountant will make compliance easier.
How NDA can help
We specialise in tax compliance and digital record-keeping. We can:
- Manage your quarterly submissions and annual reporting
- Recommend and set up suitable software
- Carry out compliance checks so you don’t pay more than necessary
- Provide guidance on property-related tax matters such as allowable expenses and ownership structures
Useful resources
- Check if you’re eligible for MTD for Income Tax (GOV.UK)
- Making Tax Digital for Income Tax – GOV.UK collection
- Step-by-step guide for landlords and sole traders
- MTD for ITSA delayed to April 2026
Final thoughts
From April 2026, landlords with property income over £50,000 must comply with MTD. Preparing early with the right systems and support will make the transition smooth and stress-free.
To discuss how MTD will affect you — and how NDA can help — get in touch today.
We’ll keep you compliant, save you time, and give you confidence in moving to digital reporting.