MTD for Landlords: What You Need to Know

Rebecca Duale
Jul 10
2 min read

When you hear the words Making Tax Digital (MTD), your first thought might be “that’s only for VAT, right?” But if you’re a landlord, especially one earning over £50,000 in rental income, MTD is coming your way, and it’s time to get prepared.

Let’s clear up some common confusion and talk about why going digital might not be as painful as it sounds (in fact, it could actually make your life easier).

What Landlords Often Get Wrong

“It doesn’t apply to me”If you earn over £50,000 a year in property income, MTD for Income Tax (also called MTD for ITSA) will apply to you from April 2026. If you earn between £30,000 and £50,000, it’s likely to apply from April 2027.

“It’s just more red tape”While it might feel like another box to tick, MTD is actually about making the tax process simpler, quicker, and less stressful. Once you’re set up with the right software, you’ll spend less time scrambling for receipts and more time focusing on your property income.

“I’ll deal with it when it starts”We get it, tax isn’t the most thrilling thing to plan for. But getting ahead of the game now means no last-minute panic later. You’ll have time to choose software, get used to it, and even start seeing the benefits well before the deadline hits.

The Real Benefits of Going Digital

Fewer errorsDigital submissions mean no more manual calculations or missed figures. The right software pulls in your income and expenses automatically, reducing the risk of costly mistakes.

Save timeWith tools like Xero or FreeAgent, you can link your bank account, snap receipts, track rent payments, and view everything in one place, no more spreadsheets or paper trails.

Real-time financial insightsOne of the biggest perks! You get a clearer view of your property finances. You’ll know what’s coming in, what’s going out, and where you stand with tax, all in real time. That means smarter decisions, fewer surprises, and more control.

Quarterly updates, not once-a-year stressMTD means sending updates to HMRC every quarter instead of scrambling once a year. It might sound like more work, but actually, it spreads the workload out and gives you a better grip on your finances throughout the year.