Government defends Making Tax Digital for landlords

Making Tax Digital dashboard above landlord tax records, expenses, HMRC paperwork and deadlines
9:52 AM, 8th September 2026, 4 days ago 19

The government claims Making Tax Digital helps landlords stay on top of their tax affairs.

In a Parliamentary written answer, Exchequer Secretary to the Treasury, Dan Tomlinson, said Making Tax Digital works well for businesses “of all types and sizes”.

Making Tax Digital for Income Tax became compulsory in April 2026 for landlords and sole traders with qualifying income of more than £50,000.

The threshold will fall to more than £30,000 from April 2027, bringing a further group of landlords, property owners and self-employed people into the system.

MTD works well for landlords

Mr Tomlinson said: “The government has worked with taxpayers, representative bodies and software developers to ensure Making Tax Digital (MTD) for Income Tax works well for businesses of all types and sizes.

“MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.

“The government has worked with the software industry to ensure a wide range of options are available to suit different needs and budgets, including low-cost and free software, supporting those with the simplest affairs. Many products are designed for users who manage their own tax affairs or those new to digital tools.”

The news comes as landlords who have not signed up for Making Tax Digital (MTD) may soon find that HMRC has done it for them.

The tax authority is beginning automatic registration from this month, in stages, for people it believes should already be using MTD for Income Tax.

HMRC says more than 570,000 customers have joined the service, with more than 436,000 sending their first quarterly update.


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Comments

  • Member Since September 2015 - Comments: 1037

    10:48 AM, 8th September 2026, About 3 days ago

    More Government gaslighting. MTD is just more bureaucracy to deter small businesses, add costs, and spy on you. It won’t belong before they’ll require every invoice to be submitted and not just totals.

  • Member Since February 2023 - Comments: 4

    11:00 AM, 8th September 2026, About 3 days ago

    What an absolute load of rubbish!!!
    I’m self employed and know many other self employed people including landlords, and i have not met a single person who thinks its a good idea. My accountant also hates it.
    It takes all workers away from their real jobs, the more time we spend working on admin, paperwork, bureaucracy the less time we are spending on actually earning money. Going to the accountant now 4-5 times a year, getting an invoice for each visit…. yes that does make sense to a financially inept govt.

  • Member Since July 2013 - Comments: 523 - Articles: 1

    11:05 AM, 8th September 2026, About 3 days ago

    Reply to the comment left by Hong Kong Phooey at 08/09/2026 – 11:00
    Yes, totally agree. Even the National Audit Office says making tax digital will cost far more to operate than it takes in taxes, but govt persists because it is all part of the digital prison being slowly built around us, for which no cost is too high, as I explain here: https://www.lettingfocus.com/blogs/2026/04/more-on-the-madness-of-making-tax-digital/

  • Member Since April 2018 - Comments: 596

    11:15 AM, 8th September 2026, About 3 days ago

    Totally agree with all the comments above. This government has wrecked small businesses with NI and minimum wages.Now it wants landlords whose intention was just a simple investment with a few properties to struggle with MTD and force many to employ expensive accountants which will put pressure on rents.
    Perhaps Labour will remove section 24 though.

  • Member Since May 2018 - Comments: 51

    11:26 AM, 8th September 2026, About 3 days ago

    My parents who are partners in our property business are 86 and 90 years old and do not own a computer. It is beyond me how they should be expected to conform to this.
    I am sure that it should be illegal at some level to expect them to suddenly become computer literate for no actual benefit.

  • Member Since June 2015 - Comments: 353

    11:32 AM, 8th September 2026, About 3 days ago

    MTD may possibly work for some people who submit their own tax return. For many it will be many, many hours of learning how to use it while still relying on the spreadsheets they are familiar with.
    For those of us who use an accountant it’s just another load of work. My accountant doesn’t want to get involved with the quarterly submissions and has said I need to submit for myself and my husband, then they will make any corrections on the end of year submission. We know the software can’t cope with two of our mortgages correctly but there’s not much I can do about that each quarter. My son’s accountant wants me to send him the profit and loss reports every quarter so he can do my son’s quarterly submissions.
    Basically there’s no standardisation and it has created a huge amount of extra work.
    In some respects I quite like the software I use. It doesn’t just do MTD. It can send invoices when tenants forget to pay their rent and it reminds me when gas safety or Right to Rent checks are due. It’s quite satisfying reconciling regular bank transactions. Where it really falls down is one off transactions or credit card reconciliation. There is a huge amount of manual entry involved. Overall the book keeping aspect was a lot quicker and easier with a spreadsheet and CSV download, which is pretty much what my accountant still wants.

  • Member Since April 2018 - Comments: 596

    11:52 AM, 8th September 2026, About 3 days ago

    Reply to the comment left by Jo Westlake at 08/09/2026 – 11:32
    What’s a spreadsheet? I am 90 years old and am not going back to school or employing an accountant or wasting what is left of my life kow-towing to these endless government laws just to make zero profit while house prices are in free fall and if enough people actually stood up, like the Poll tax , MTD would be shelved. Unqualified individuals should not be expected to make returns using complex IT instruments IMO or be forced to use accountants.
    Quite amazing your accountant is too lazy to get involved with quarterly submissions and when it all goes wrong these accountants will no doubt say they bear no responsibility, but meanwhile happy to take your money.

  • Member Since April 2017 - Comments: 7

    12:41 PM, 8th September 2026, About 3 days ago

    I have 3 income streams, so would have to make 13 submissions each year. How can that be said to simplify my affairs!

    I looked into software and just didn’t understand it, and none of them seemed to work for all my businesses.

    Luckily, I applied for an exemption (which was a traumatic experience in itself!) and got accepted, otherwise heaven knows how I’d have coped…

  • Member Since September 2026 - Comments: 1

    1:29 PM, 8th September 2026, About 3 days ago

    Reply to the comment left by Hong Kong Phooey at 08/09/2026 – 11:00
    I totally agree with the majority of comments here – Making Tax Digital is adding more work, bureaucracy and costs for preciously little or no benefit at all!

  • Member Since November 2015 - Comments: 45

    2:46 PM, 8th September 2026, About 3 days ago

    How dare these ignoramus deadbeat politicians impose yet more work on landlords? They’re not remotely democratically elected and nearly all of them have never done a job of any substance, let alone run a business.

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