Making Tax Digital will be mandatory for some landlords from April 2026

Landlords earning more than £50,000 will have to adopt Making Tax Digital (MTD) for paying their income tax from April 2026.

HM Revenue and Customs (HMRC) says it wants to modernise financial reporting by mandating digital record-keeping and quarterly submissions through compatible software.

To help landlords, it has published an updated list of complaint software programs that landlords can use – which we list below with links to the providers.

Around 780,000 self-employed individuals and landlords will need to comply by updating their income and expenses and then submitting summaries every three months.

This change is expected to ease the burden of annual tax returns, allowing business owners to dedicate more time to their core activities.

MTD testing programme sign up

HMRC’s director of making tax digital, Craig Ogilvie, said: “MTD for Income Tax is the most significant change to the Self Assessment regime since its introduction in 1997.

“It will make it easier for self-employed people and landlords to stay on top of their tax affairs and help ensure they pay the right amount of tax.”

He added: “By signing up to our testing programme now, self-employed people and landlords will be able to familiarise themselves with the new process and access dedicated support from our MTD customer support team, before it becomes compulsory next year.”

James Murray, the exchequer secretary to the Treasury, said: “MTD for Income Tax is an essential part of our plan to transform the UK’s tax system into one that supports economic growth.

“By modernising how people manage their tax, we’re helping businesses work more efficiently and productively while ensuring everyone pays their fair share.”

More landlords will join in 2027

HMRC says that by April 2027, another 970,000 taxpayers with incomes of more than £30,000 will join MTD, with the threshold dropping to £20,000 in 2028.

The move to quarterly updates aims to create a near real-time tax system, reducing the end-of-year scramble and helping businesses maintain better financial oversight.

HMRC is urging those affected to join a testing programme on Gov.uk to prepare for the transition (see below).

The initiative builds on the success of MTD for VAT, which has supported more than two million businesses in reducing errors.

MTD-compatible landlord software

To comply with the rules, landlords must use MTD-compatible software to record self-employment and property income, send quarterly updates and submit tax returns by 31 January annually.

Software options include tools that create digital records by linking to bank accounts, scanning receipts or manually logging transactions.

Alternatively, bridging software can integrate with existing spreadsheets or accounting tools.

Taxpayers can opt for a single product or multiple tools, depending on their needs, such as supporting multiple income sources or working with agents.

HMRC’s software finder tool on Gov.uk helps landlords identify suitable products and currently lists:

• BTC Software by Bright
• Federation of Small Businesses MTD (fsb 50)
• Glasscubes MTD Assist
• Kletta
• Landlord Studio
• LandlordVision
• PaTMa Property Manager
• SE Reports
• Smartpropertymanager.com
• Vital Tax.

Other leading accountancy packages, such as Xero and Sage, also offer MTD functionality.

More information on MTD

The sign-up page for HMRC’s Making Tax Digital testing programme is here.

The National Residential Landlords Association has also produced a helpful step-by-step guide to help landlords understand Making Tax Digital.