With the Making Tax Digital (MTD) deadline fast approaching on 6 April 2026, landlords earning over £50,000 are being urged to prepare for significant changes in tax reporting. Industry experts stress the importance of adopting digital record-keeping and submitting quarterly updates to HM Revenue & Customs (HMRC) using approved software.

Preparing for a major tax system overhaul

The introduction of Making Tax Digital marks one of the most substantial reforms to the UK tax system in decades. From April 2026, landlords with qualifying rental income must maintain digital records and provide quarterly submissions through MTD-compliant software. This requirement aims to streamline tax processes but represents a considerable shift for many landlords and letting agents.

Propertymark, a leading industry body, is advising landlords and agents to take immediate action. This includes reviewing official HMRC guidance, selecting suitable software compatible with MTD, and establishing robust digital record-keeping systems. Despite the government’s announcement that penalty points for late submissions will be waived during the first year, early preparation is crucial to avoid last-minute complications.

Industry support and upcoming guidance

Nathan Emerson, CEO of Propertymark, emphasises the urgency: “Making Tax Digital represents one of the most significant changes to the tax system in a generation. Agents have a key role to play in supporting their clients through this transition, with guidance on timelines regarding selecting the right software, to embedding new reporting processes. With just days to go, there is now an urgent need for landlords and agents to ensure they are ready.”

To assist with this transition, Propertymark is hosting a webinar with HMRC on 27 April 2026. This session will address the impact of MTD on landlords and letting agents, particularly as the qualifying income threshold is expected to reduce to £20,000 from April 2028, although this figure remains under review.

Costs and concerns surrounding Making Tax Digital

While the government promotes MTD as a tool to simplify tax management, some professionals question its practical benefits. Simon Misiewicz, an accountant, has expressed scepticism, stating: “There’s no real benefit beyond maybe streamlining some of the work you already do, does it help with tax returns and submissions? The truth is, I can’t see how.”

He further explains that submitting quarterly returns offers no advantage to individual landlords, as HMRC does not process these until the end of the tax year. “You don’t pay your taxes any earlier, and there is no real cash-flow benefit for the government,” he adds.

The government’s own impact assessment acknowledges that landlords earning over £50,000 may face an average transitional cost of £285 and an additional annual cost of around £115 due to MTD compliance.

What this means for landlords

Landlords must recognise that Making Tax Digital will require changes to their accounting practices and potentially increase administrative costs. Early adoption of compliant software and digital record-keeping will be essential to meet the new quarterly reporting obligations. While the first year offers some leniency on penalties, ongoing compliance will be mandatory.

Letting agents also have a pivotal role in guiding landlords through these changes, helping them select appropriate software and adapt their financial processes. Awareness and preparation will be key to avoiding disruption and ensuring smooth tax submissions under the new system.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/