Making Tax Digital for Landlords: What It Means and Why It Matters

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The government’s Making Tax Digital (MTD) initiative is changing the way individuals and businesses record and report their tax information. From April 2026, most landlords with an annual property or self-employment income above £50,000 will need to follow the new digital rules. The threshold will extend to those earning above £30,000 from April 2027.

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These changes aim to make the UK tax system more accurate, efficient and easier to manage. For landlords, it means moving away from paper or spreadsheet records and using approved software to keep digital records and send quarterly updates to HMRC.

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What Landlords Need to Know

Landlords who meet the income threshold will need to:

• Keep digital records of property income and expenses
• Submit quarterly updates to HMRC using compatible software
• Complete a digital year-end submission to finalise their tax position

Some landlords may be exempt, for example those who are digitally excluded because of age, disability or location, or whose income falls below the qualifying threshold.

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Why It Is Important to Prepare Now

Making Tax Digital is more than a compliance requirement. It is also an opportunity to modernise your record keeping and gain better financial insight into your property portfolio.

Benefits include:

• Greater accuracy and reduced errors
• Up-to-date visibility of your tax position throughout the year
• More efficient record keeping and improved organisation

The move to MTD may seem complex at first, but preparing early will make the transition smoother. Choosing the right software, setting up digital records and understanding the reporting process will help you stay compliant and avoid any penalties when the rules take effect.

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Join Our MTD Seminar

At Mitchell Associates, we are helping landlords prepare for Making Tax Digital and make the switch with confidence.

Our upcoming MTD ITSA Seminar will explain:

• Who the new rules apply to and when they begin
• What software and systems you will need
• Practical steps to get ready now

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Spaces are limited. Book your place below.