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Making Tax Digital

Making Tax Digital for Income Tax Self-Assessment will be introduced in April 2026.

Making Tax Digital for Landlords

What is Making Tax Digital?

MTD is HMRC’s plan to digitise the tax system for VAT registered businesses, Income Tax, Self Assessment for sole traders and landlords, Partnerships and Corporation Tax. Its aim is to make it easier for individuals and businesses to get their tax right and keep on top of their affairs.

From April 2026, landlords with a gross turnover in excess of £50,000 will be required to switch to using MTD for their income tax accounting and reporting. From April 2027, those with income over £30,000 will then be required to be MTD-compliant.

Making Tax Digital for Landlords

How will Making Tax Digital affect me?

If you’re using spreadsheets, you will need to use software or start using HMRC-recognised software instead. For more information, read our helpful FAQs.

Tax returns completed at Critchleys will have access to a fantastic free MTD compliant software called Hammock.

Making Tax Digital for Landlords

What do I need to do now?

Make sure you’re compliant with MTD by adopting fully compatible software, keeping digital records and signing up before the deadline. If you are a Critchleys client we will be offering MTD software free as part of our services.

Not sure if you’re affected? Please get in touch


Free MTD software tool

Critchleys clients have free access to a great tool called Hammock. This MTD compliant tool gives you additional benefits, including:

  • Late rent notifications
  • Reminders for expiring documents and deadlines
  • P&L per property
  • Rental History per tenant
  • Bank feed connection to automate most of your bookkeeping.

Making Tax Digital FAQ for Landlords

Does this affect all landlords?

From April 2026, if your gross turnover is more than £50,000 yearly from either a property or property business, you must comply with MTD rules. Then, from April 2027, if your gross turnover is more than £30,000 yearly from either a property or property business, you must comply with MTD rules.

If your gross turnover is under the £30,000 a year threshold, you can continue to use the current Self-Assessment system as normal.

If, as a landlord, you also have a business, you will need to combine your income from all your businesses, including gross rental income, to see if you are above the £30,000 threshold.

If you own property jointly (say with a spouse), each person has the £30,000 threshold; therefore, if your share of gross rental income is above £30,000, you will need to register for MTD.

What property types does MTD take into consideration?

  • Residential property
  • Furnished Holiday Lettings (FHL)
  • Commercial property
  • Non-UK overseas property

What if I am a landlord that’s registered as a limited company?

Currently MTD does not apply to landlords who are registered as a limited company. 

What software will I need?

You must check the software you currently use is MTD compatible. You can do this here on HMRC’s website. 

What do I need to submit?

You must submit quarterly updates for rental income and expenses every three months. The deadline dates are as follows:

Quarterly period

Quarterly Deadline

6 April to 5 July

5 August

6 July to 5 October

5 November

6 October to 5 January

5 February

6 January to 5 April

5 May

At the end of a tax year (before 31 January), you will need to make any tax adjustments to an end-of-period statement (which combines all four quarters) and submit this to HMRC.

Any other sources of personal income, such as savings or dividend income, will also need a final declaration to HMRC by 31 January.

What if I run a business as well as being a landlord?

You must keep separate records and make separate submissions for each business. Please refer to our Making Tax Digital for Businesses page if you are a landlord and also run a business. 



Do not take any action without speaking to a professional. These articles and related content is provided as a general guidance for informational purposes only.
The information is correct and valid at the time of publication but as it is general guidance, no guarantees can be made regarding its suitability for your particular needs. Critchleys is not liable for any loss or damage whatsoever, including without limitation, any direct, indirect, consequential or incidental loss or damage, arising out of, or in connection with, the use of this information.