Making Tax Digital (MTD) is one of the biggest long-term changes to the UK tax system, and all landlords and property investors should be aware of it.
With full rollout coming soon, now is the time to ensure you understand how it works when it applies to you, and what steps you need to take to stay compliant and avoid penalties.
At Christopher Anthony Property Experts, we work closely with landlords and investors across Hampshire and Surrey, and we’re here to help you prepare for the digital tax future.
What Is Making Tax Digital?
Making Tax Digital is a government-led initiative that aims to simplify tax by digitising the way businesses and individuals keep financial records and file returns.
It means:
- Keeping digital records of your income and expenses
- Submitting quarterly updates to HMRC using approved accounting software
- A shift away from traditional self-assessment tax returns
When Does MTD Apply to Landlords?
The rollout is being phased in:
- From April 2026, landlords earning over £50,000 annually from rental income must comply.
- From April 2027, this extends to landlords earning over £30,000.
Even if you’re not affected just yet, preparing in advance will help make the transition smoother and more cost-effective.
What Does This Mean for You?
If you’re a landlord or property investor in Hampshire or Surrey, here’s what you’ll need to do under MTD:
- Use compatible software to track rental income and allowable expenses
- Submit quarterly updates to HMRC (instead of a single annual return)
- File a final end-of-year statement confirming your total income and tax due
This applies whether you own:
- A single buy-to-let property
- A portfolio of HMOs
- Short-term holiday lets
- Mixed-use or commercial properties
Benefits of Going Digital
Although it’s a change, MTD does have advantages for property investors:
- Better visibility of your cash flow and tax position throughout the year
- Fewer surprises at tax time
- More straightforward to stay organised and compliant, especially if you own multiple properties
How to Prepare
- Check your income – MTD will affect you soon if your total property income exceeds £30,000 or is getting close.
- Get MTD-ready software – Tools like Xero, QuickBooks, or FreeAgent are great options.
- Speak to an accountant – They can help you set up, train you on using the software, or even manage submissions on your behalf.
- Don’t leave it too late – HMRC penalties will apply if you fail to meet MTD deadlines once it goes live.
MTD may feel like a hassle now, but with the proper setup, it can simplify your tax process—and even improve how you manage your property finances.
At Christopher Anthony Property Experts, landlords should be fully informed about all aspects of property ownership—including tax. Whether you’re managing one flat or multiple properties across Hampshire and Surrey, we’re here to support you every step of the way.
Need help preparing for MTD or want to find trusted local accountants to support you? We can point you in the right direction—just get in touch.
