PREPARING LANDLORDS FOR MAKING TAX DIGITAL: WHY 2026 IS CLOSER THAN YOU THINK

ASESA Solutions Ltd - PREPARING LANDLORDS FOR MAKING TAX DIGITAL: WHY 2026 IS CLOSER THAN YOU THINK

Making Tax Digital (MTD) for Income Tax is now a reality for many taxpayers, and landlords are among the groups most likely to be affected in the coming years.

While some landlords may not yet fall within the mandatory thresholds, now is the ideal time to prepare.

Who Will Be Affected?

Landlords with qualifying property income and self-employment income above the relevant thresholds will gradually be brought into the MTD regime.

The government plans to extend MTD requirements to increasing numbers of taxpayers over the next few years.

How Can Landlords Prepare?

Now is a good time to:

• Separate personal and rental finances

• Review record-keeping processes

• Consider suitable software solutions

• Ensure all property income and expenses are properly documented

  
  

MTD for Landlords

Making Tax Digital will gradually affect more landlords as qualifying income thresholds expand over the coming years. Landlords who currently submit a single annual tax return will need to move towards digital record-keeping and quarterly reporting.

What Will Change?

Under MTD, landlords will need to:

• Maintain digital records of income and expenses.

• Submit quarterly updates to HMRC.

• Use compatible software.

• Complete an end-of-year finalisation process.

Common Challenges

Many landlords still:

• Keep records in paper form.

• Use multiple spreadsheets.

• Mix personal and rental transactions.

• Leave bookkeeping until year-end.

Key Takeaways

Landlords who start preparing now will find the transition significantly easier and reduce the risk of errors, missed deadlines, and last-minute stress when MTD requirements apply to them.