Calling all landlords and self-employed MTD is coming, are you ready?
If you’re a landlord or self-employed with property or business income over £50,000 a year, significant changes are coming your way. From April 2026, you’ll be required to follow the Making Tax Digital (MTD) rules for Income Tax. This will affect how you keep records and submit your tax information to HMRC.
Recent research confirmed that one in three sole traders have not yet heard of MTD for income tax, let alone having been contacted by their accountants or advisers who are advising them to start preparing now. The research also confirmed that many accountants themselves are unprepared as to how they are going to help, service and advise their clients impacted by these changes, but not us here at RPGCC, we are beating that landlords and self-employed MTD drum loud and clear. and we are ready and waiting to help!
A reminder for landlords and self-employed MTD – what is MTD for Income Tax?
MTD for Income Tax Self-Assessment (MTD for ITSA) is part of HMRC’s wider plan to digitise the UK tax system. It will eventually replace the traditional annual tax return for most self-employed individuals and landlords. Instead, you’ll need to keep digital records and send quarterly updates to HMRC using approved software.
Landlords and self-employed MTD, who will it affect?
From 6 April 2026, MTD for ITSA will apply to:
- Individual landlords whose gross property income exceeds £50,000 per tax year. This includes UK and overseas rental income; and
- Sole traders and partnerships with combined business income over £50,000.
HMRC’s instructions regarding who will need to use the MTD service from 6 April 2026 are:
You will need to use Making Tax Digital for Income Tax from 6 April 2026 if all of the following apply.
- You are an individual registered for Self-Assessment;
- get income from self-employment or property, or both, before 6 April 2025;
- have a qualifying income of more than £50,000 in the 2024 to 2025 tax year; and
- have a National Insurance number (non-resident landlords who do not have a National Insurance number are therefore outside the scope of MTD for ITSA).
If your income from property and/or self-employment is between £30,000 and £50,000 based on your 2025/26 Tax Return, you’ll be required to join the system from April 2027.
Even if you’re only just over the threshold, you’ll still be caught by the rules – so now’s the time to start planning.
References to income above mean income before expenses are deducted, not profits. In particular for landlords this is gross rent before any agent deductions.
What do landlords need to do now?
Although 2026 might seem a way off, preparing early will save stress and allow time to choose the right systems for your needs. Here’s what you can do now:
- Start keeping digital records of rental income and expenses (ideally by trying out cloud-based software).
- Talk to us about the best digital tools and how quarterly reporting will work.
- Keep an eye out for software trials and MTD-compatible platforms that suit landlords. We can make recommendations for software if you would like to speak to us about this.
Why it matters
MTD for ITSA isn’t just an admin change – it’s a shift in how your tax affairs will be managed. Late or inaccurate reporting could lead to penalties, so being ready is crucial.
If you’re a landlord or self-employed, MTD is coming your way. If you are unsure whether you’ll be affected or how to start the transition, don’t wait. Call us now on 020 7870 9050 or contact us. Getting advice early will give you the time and clarity you need.
