Four in five landlords ready for Making Tax Digital

With only a month to go until Making Tax Digital, landlords are feeling more prepared than sole traders, claims a new report.

A report by accounting firm Wolters Kluwer Tax & Accounting reveals four in five landlords (80%) feel prepared for Making Tax Digital compared to 64% of sole traders.

Under the controversial scheme, from April this year, landlords earning more than £50,000 will be required to keep digital records and submit quarterly updates to HMRC using authorised Making Tax Digital-compliant software.

Landlords are largely on track

Bas Kniphorst, executive vice president and managing director of Wolters Kluwer Tax & Accounting Europe, said: “Making Tax Digital represents a fundamental shift in how individuals manage and report their tax affairs, and this research shows that while landlords are largely on track, many sole traders still feel uncertainty.

“With April 2026 fast approaching, the priority now must be turning awareness into action, supported by clear guidance, the right technology and trusted professional advice.”

According to the research, around two-thirds of landlords (66%) say they are familiar with Making Tax Digital requirements, compared with almost half of sole traders (46%) who say they know very little about what it involves.

The research reveals landlords are more likely than sole traders to see bigger strategic benefits, such as better financial forecasting and data analysis (44% of landlords versus 14% of sole traders) and increased bookkeeping efficiency (40% versus 32%).

No real benefit

However, as previously reported by Property118, despite the government claiming Making Tax Digital will help landlords, an accountant says this is not the case.

Simon Misiewicz previously told Property118: “There’s no real benefit beyond maybe streamlining some of the work you already do,” he says. “Does it help with tax returns and submissions? The truth is, I can’t see how.

“There’s no advantage for the individual in submitting quarterly returns, because HMRC doesn’t do anything with them until the end of the year. You don’t pay your taxes any earlier, and there is no real cash-flow benefit for the government”.

The government admitted in the Making Tax Digital impact assessment that landlords earning £50,000 could incur an average transitional cost of £285 and an average annual additional cost of £115.