Government ramps up campaign to prepare landlords for Making Tax Digital

The government claim they are working with the software industry to make Making Tax Digital (MTD) compatible products available for landlords.

In answer to a written question, the government claim they are ramping up their campaign to inform landlords about Making Tax Digital.

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.

Making Tax Digital will help landlords keep on top of their tax affairs

Independent MP James McMurdock asked the government: “What steps HM Revenue and Customs (HMRC) is taking to ensure that sole traders and landlords impacted by the new Making Tax Digital for Income Tax rules are aware of their obligations.”

In response, Labour MP Dan Tomlinson says the government is working to inform landlords of their obligations, claiming Making Tax Digital will help keep landlords on top of their tax affairs.

He said: “The government is undertaking a range of activities to ensure those needing to use Making Tax Digital (MTD) for Income Tax from April 2026 are ready and able to do so successfully.

“This includes targeted media campaigns, awareness letters, developing guidance, and working with the software industry to ensure a broad range of MTD‑compatible products is available, to suit different needs and budgets. Free options will support those with the simplest affairs.

“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 published guidance to help landlords find the right software for MTD, including a list of approved software providers.

Alongside this, a new online search tool has been launched, which asks a series of questions tailored to sole traders and landlords, before generating a personalised list of compatible MTD software options.

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.