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Making Tax Digital for Landlords - changes to record keeping and reporting obligations from 6 April 2026
If you receive income from renting out a property, the obligations for record keeping and reporting is about to change.
Making Tax Digital for Income Tax (MTD for IT) is a key part of the government’s initiatives to modernise HMRC management of data and taxpayer interaction.
Summary of changes
- Record keeping of income and expenditure must be digital, rather than paper records.
- Reporting of income and expenses to HMRC needs to be quarterly.
- Software requirements that work with MTD.
- Submission of updates every quarter, bringing the tax reporting closer to real-time.
- New rules also apply to self-employed individuals.
Could you be affected by the introduction of MTD for IT?
MTD for IT will be introduced in three phases:
Turnover (gross income before deductions): | Required to register for MTD for IT: |
|---|---|
| > £50,000 p/year | From 6 April 2026 |
| > £30,000 p/year | From 6 April 2027 |
| > £20,000 p/year | From 6 April 2028 |
If you also receive self-employment income, you will be subject to a further set of record-keeping and reporting obligations.
Receipts from all relevant businesses are added together, which will determine the requirement to register for MTD for IT.
For example, an individual who has turnover from income from property of £30,000 and self-employment income of £25,000 will be required to join MTD for IT, as the combined amount exceeds £50,000. Therefore, reporting would be required for both your rental income and self-employment.
Requirements under MTD for IT
As well as maintaining digital records, landlords whose income will require them to register for MTD will also be subject to file quarterly reports to HMRC of income and expenses, as well as submitting a final declaration.
Quarterly reporting
Every quarter, you will need to provide details of the gross income received as well as expenditure incurred during that period.
For UK and overseas rental properties, each will be required to have its own digital record and submit a separate quarterly report for their total UK and overseas property businesses (they cannot be added together).
Expenses that need to be reported are the same as those currently reported annually in your self-assessment tax return, such as property maintenance, ground rents, management and other professional fees.
Further information
To discuss this in more detail, please contact your accountant or we can make an introduction if required.
Contact us:
Please contact us if you have any questions or would like to discuss this further:
Catriona Mackay, Senior Rental Specialist
catriona.mackay@eccord.com
+44 (0)7464 197 983
+44 (0)20 7244 4488
