From April 2026, Making Tax Digital (MTD) for Income Tax will become mandatory for landlords with rental income exceeding £50,000. At Christopher Anthony Property Management Experts, we’re encouraging landlords across the South East to take steps now to prepare for the changes and protect their income.
What is Making Tax Digital?
MTD is a government initiative to modernise the tax system by moving away from paper-based submissions and annual returns. Instead, landlords will be required to keep digital records and submit quarterly updates to HMRC using approved software.
The idea is to reduce the stress of last-minute tax returns by spreading out the admin throughout the year.
What Will Change?
If you’re a landlord affected by MTD, here’s what you’ll need to do:
- Keep digital records of rental income and expenses
- Submit quarterly summaries to HMRC using compatible software
- File an end-of-year declaration to confirm income and claim any final allowances
Quarterly updates are not additional tax returns but simple summaries automatically generated by your chosen software.
Benefits for Landlords
More than 2,000 updates have already been successfully submitted through HMRC’s testing programme, with feedback being largely positive. Key advantages include:
- Real-time estimates of your tax bill
- Fewer surprises in January
- Easier cash flow planning
- Fewer errors due to digital record-keeping
Whether you’re already using spreadsheets or accounting tools, there are software solutions available to help bridge the gap to MTD compliance. Some are free, while others are paid, so finding the right fit for your business is key.
How Should Landlords Prepare?
If your gross rental income exceeds £50,000 per year, you’ll be among the first group of landlords required to comply with MTD from April 2026. We recommend:
- Reviewing your current record-keeping system
- Exploring MTD-compatible software options
- Joining HMRC’s pilot programme to familiarise yourself with the process early
- Seeking advice if your portfolio includes joint ownership or complex structures
Making Tax Digital is a significant change, but it doesn’t have to be overwhelming. With the right preparation and support, landlords can transition smoothly while improving their financial visibility and planning.
At Christopher Anthony Property Management Experts, we’re already helping landlords across the South East adapt to these changes. If you’re unsure where to start or need help reviewing your portfolio’s compliance, contact us today.
