If you are a landlord, you may have started hearing more about Making Tax Digital, especially with April 2026 on the horizon.
For many people, letting out a property is part of a long-term family plan, an investment for the future, or simply a way of managing a home that is no longer needed. When tax reporting rules begin to change, it is natural to want a clear explanation of what it means in practical terms.
The good news is that Making Tax Digital need not feel overwhelming. With early preparation, most landlords will find the transition straightforward.
This guide explains the changes clearly and practically.
Why is rental income reporting changing?
Making Tax Digital is part of HMRC’s plan to modernise the tax system.
At the moment, many landlords report rental income through one annual Self Assessment return. Under the new system, HMRC wants income and expenses to be recorded digitally and shared more regularly throughout the year.
It is important to note that this change concerns the reporting process, not landlords paying more tax. The way figures are submitted will look different, but the underlying tax rules remain familiar.
When will landlords need to follow Making Tax Digital?
Making Tax Digital for Income Tax will be introduced in stages.
From 6 April 2026, landlords will need to comply if their qualifying income from property and/or self-employment is more than £50,000 per year.
HMRC has confirmed that the threshold will be reduced in later years. From April 2027, the rules will apply to those earning over £30,000. From April 2028, the threshold is expected to reduce further to £20,000, subject to legislation.
This means some landlords may not be affected immediately, but more people will fall within scope over time.
Once you know when the changes begin, the next step is understanding what they will look like in practice.
What does this mean for everyday landlords?
For landlords, the biggest difference is that record keeping becomes more consistent across the year.
Instead of gathering everything together at the end of the tax year, landlords within scope will need to keep rental income and allowable expenses recorded digitally as they go.
During the year, summary updates will be sent to HMRC through compatible software. These are not tax bills, but simply regular snapshots of income and costs.
At the end of the tax year, landlords will still complete a final submission to confirm their figures, and the usual Self Assessment payment deadline of 31 January will remain unchanged.
Will landlords need new software?
HMRC will not provide its own software platform for Making Tax Digital.
Landlords will need to use commercial MTD-compatible software to keep records and send updates correctly. Some landlords may feel comfortable managing this themselves, while others may prefer support from an accountant or adviser.
If you are unsure what will work best, it is worth exploring options well ahead of April 2026.
Simple steps that can help you prepare early
For most landlords, preparation does not need to be complicated.
It may be helpful to review your rental income level, keep clear records of expenses, and consider whether your current system is ready for digital reporting.
Starting early gives you time to make changes gradually, rather than feeling rushed as deadlines approach.
Support from Whitegates as requirements evolve
Making Tax Digital introduces a new reporting process for landlords, becoming mandatory from April 2026 for those above the income threshold.
Whitegates can support landlords with professional property management, clear rental documentation, and local guidance to help you stay organised as requirements develop. If you would like advice ahead of April 2026, speak to your local Whitegates branch.
