Government says support in place for landlords ahead of Making Tax Digital
1 month ago | 13 comments
Making Tax Digital – can’t sell, can’t rent, screwed?
12:01 AM, 16th March 2026, 1 month ago
4
Hello, Will I become liable for Making Tax Digital (MTD) if I rent out instead of selling my property?
As I’m now in my 70’s and finding, just about everything, too complicated, I decided to sell 2 properties to stay under the 50K MTD limit but I’ve hit a problem and just don’t know which way to turn now.
I started the process 2 years ago – section 21 and bailifs etc, to get property 1 in Leeds empty.
Local agent marketed it for a over a year at what they felt was a reasonable rate for the area and property.
Spent £3,000 updating the property.
Changed agent who said price is right – but still not sold.
Property is in negative equity so I’ve paid that down. The mortgage period also ended 2 years ago but that’s been extended to May 2026.
I have a similar issue in Huddersfield which is now also empty and proving to be unsaleable and the mortgage is due to end in May 2026.
So, I thought OK let’s remortgage, put some of my pension pot into them and put tenants in again.
That would take my gross rental income of £39,000 back to £57,000.
Is MTD compulsory for me now?
Will the new tenancy agreement ever allow me to sell up?
Am I missing a trick?
Kind regards,
Allan
Tags:
HMRC Making Tax Digital, HMRC Making Tax Digital April 2026 Deadline, How landlords can avoid Making Tax Digital reporting, Landlord exemption from Making Tax Digital, Making tax digital
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Member Since March 2019 - Comments: 73
9:56 AM, 16th March 2026, About 1 month ago
Do not worry i you have an accountant they can handle it all.
If you do not use an accountant ,get one!
Member Since July 2023 - Comments: 1
10:24 AM, 16th March 2026, About 1 month ago
Hi. I do feel really sorry for you that at this stage in life you’re having to make these decisions.
Being an accountant there is a technical issue with the Mtd system that means your 2024/2025 tax return is assessed for Mtd which means even if you now sell and under 50k you still have to do it for at least 3 years!
Yes I know its crazy and had this dicussion with Hmrc.
Apparantly no one knows about this and it appears to be a unplanned software issue on Hmrc side.
Wish you all the best. If you need an accountant or just a chat I am based in Bradford. All the best
Member Since February 2024 - Comments: 71
2:00 PM, 16th March 2026, About 1 month ago
Just had email from HMRC Help and Support regarding using MTD. If I read it correctly, the following applies: you would need to use MTD from:
April 2026 if your qualifying income in the tax year 2024-25 is over £50k.
from April 2027 if your qualifying income in the tax year 2025-26 is over £30k
And from April 2028 if your qualifying income in tax year 2026-27 is over £20k.
So depending on your qualifying income (self employment and rental income) if less than £50k in 2024-2025 it seems you won’t have to register for this April. However you will have to from April 2027 with rental income of £37k
Member Since October 2020 - Comments: 1180
5:21 PM, 16th March 2026, About 1 month ago
If I were you, I’d be more worried about the Renters Rights Act than MTD, particularly at that age. You could probably get an exemption from MTD if you are not great with computers.