Landlords
Making Tax Digital for landlords: what changes and when
Making Tax Digital (MTD) for Income Tax replaces the annual self assessment tax return with quarterly digital submissions, and landlords are firmly in scope. If your combined property and self-employment income is above the entry threshold, you'll need MTD-compatible software and a new quarterly routine. Here's the plain-English version.
Who is affected, and from when?
MTD for Income Tax is being phased in by income level, starting with the highest earners and working down. The thresholds and start dates are set by HMRC and have moved before — so rather than pin your plans to a date in a blog post, the golden rule is: if your gross rental income (before expenses) plus any self-employment income is over £20,000 a year, assume MTD is coming to you soon and prepare now. We confirm each client's exact start date against HMRC's current timetable.
What actually changes day to day?
Three things. First, you keep digital records of rental income and expenses — a spreadsheet alone won't cut it unless it's linked to compliant software. Second, you send HMRC a quarterly update from that software. Third, you file a final declaration after the tax year ends, which replaces the old return.
What software do landlords need?
Any HMRC-recognised MTD software works. We set landlords up on Xero with DEXT for receipt capture because it makes the quarterly updates close to automatic — but the right answer depends on portfolio size and how you like to work. The important thing is choosing before your start date, not after.
What should you do now?
Get your records digital this tax year, even if your start date hasn't arrived. Landlords who switch early treat the first MTD year as routine; those who wait spend January untangling a shoebox. If you're a Leeds landlord and unsure where you stand, we'll check your position against HMRC's current timetable in one short call.
This is general information, not advice for your circumstances. If you'd like it applied to your situation, get in touch — the first chat is free.
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