Making Tax Digital: What Landlords Need to Know

 The UK government’s Making Tax Digital (MTD) initiative is set to bring significant changes for many landlords from April 2026, and Douglas Dickson Property Management is here to help you navigate these new rules.

Who Does Making Tax Digital Affect?

HMRC are bringing in new regulations for landlords and sole traders with turnover of over £50,000 from April 2026. This is part of their Making Tax Digital plan.  

·       From April 2026: Sole traders and landlords with turnover over £50,000 

·       From April 2027: Sole traders and landlords with turnover over £30,000 

·       From April 2028: Sole traders and landlords with turnover over £20,000

Those who hold their properties in Limited companies or Partnerships are not currently affected.

What's changing?

You'll need to use recognised software to keep records of your self-employment and property income and expenses and send quarterly updates to HMRC. These quarterly updates aren't tax returns – they're just simple summaries of how your business is doing, in four smaller chunks, pulled from your records. You won't pay four tax bills a year; the deadline for paying your tax will still be 31 January, but this is supposed to simplify the process. 

What Do Landlords Need to Do?

• Register for Making Tax Digital with HMRC before April 2026 if your property income is above £50,000.
• Keep digital records of all your property income and expenses using compatible software. Our property management software can directly upload into HMRC approved software to help you efficiently manage the process.
• Submit quarterly updates to HMRC via your chosen software, rather than an annual return. The first return will be due by 7^th August 2026.
• Ensure your chosen software meets HMRC’s requirements and allows for seamless submission of your tax data.
• Stay on top of deadlines, as late submissions could result in penalties.

We recommend reviewing your current record-keeping processes.

Our property management software can directly upload into an HMRC approved digital accounting software to help you efficiently manage the process.

If you’re unsure about the requirements or how to get started, our team is here to provide advice and support.