The way landlords report income to HMRC is about to change, and for many property owners, this will be one of the biggest administrative shifts in years.
Making Tax Digital for Income Tax isn’t a minor tweak. It changes how records are kept, how often information is submitted, and how landlords interact with the tax system.
Some landlords are already preparing. Many others are unaware it even applies to them.
First Things First: What Is Making Tax Digital?
Making Tax Digital is HMRC’s move toward a fully digital tax reporting system.
For landlords, this means:
✔ Keeping digital records
✔ Submitting quarterly updates using MTD compatible software
✔ Completing a Final Declaration by the usual year-end (e.g. 31st Jan) using MTD compatible software
When Will MTD Affect Landlords?
MTD is being introduced in phases based on gross income (not profit) from property and self-employment.
Start Date
April 2026 - Gross Income Threshold of £50,000+ (in 24/25)
April 2027 - Gross Income Threshold of £30,000+ (in 25/26)
April 2028 - Gross Income Threshold of £20,000+ (in 26/27)
The threshold includes:
✔ Property income
✔ Self-employed income
It does not include:
✘ PAYE salary
✘ Dividends
✘ Pensions
✘ Interest
For jointly owned property, each owner is assessed on their share of income.
Example:
£50,000 gross rent split 50/50 → £25,000 per owner
Digital Record-Keeping: The Big Adjustment
Under MTD, records must be kept digitally. This includes:
✔ Scanned receipts
✔ Photos of paper invoices
✔ Digital storage of documents
Receipts are not uploaded to HMRC, but must be retained in case of enquiry.
HMRC investigations can look back several years, so consistent record-keeping matters.
What Landlords Should Do Now
1️⃣ Determine your gross income position
2️⃣ Speak with your accountant
3️⃣ Choose HMRC-approved software
4️⃣ Start digitising receipts
5️⃣ Avoid last-minute onboarding
Join 1Let’s Online Q&A on Making Tax Digital
To help landlords cut through the noise and understand what actually matters, 1Let is hosting a free online Q&A session.
📅 Date: Tuesday 24th March
⏰ Time: 12:30 – 1:00 pm
💻 Format: Online (Teams)
We’ll cover:
✔ What MTD means in real terms
✔ Who needs to act and when
✔ Joint ownership simplifications
✔ Record-keeping and software
✔ Live landlord questions
Whether MTD affects you in 2026 or later, this session will help you prepare with confidence.
Do not wait until April to get started.
At 1Let, we’re committed to helping landlords stay informed, compliant, and ahead of change.