Leading lettings group launches Making Tax Digital support for landlords

Leading lettings group launches Making Tax Digital support for landlords

LRG, a major UK lettings agency group, has partnered to provide Nexus software to landlords, easing compliance with Making Tax Digital (MTD) for Income Tax Self Assessment. The rollout covers over 70,000 properties across 300 branches.

LRG, one of the largest lettings agency groups in the UK, has signed a deal to offer its landlords access to Nexus, a software solution designed to streamline compliance with Making Tax Digital (MTD) requirements. The partnership aims to simplify the tax reporting process for landlords using agent-managed services, including rent collection and full management. Nexus integrates directly with letting agent software to consolidate rental income, management fees, expenses and property records into an MTD-ready workflow. This eliminates the need for landlords to manually reconstruct financial records each quarter from rental statements.

The rollout covers LRG’s extensive UK lettings network, including well-known brands such as Romans, Leaders, Stirling Ackroyd, Gibbs Gillespie, Chancellors and Manning Stainton. Collectively, LRG manages over 70,000 properties through more than 300 branches and employs around 3,350 staff, making this one of the largest single MTD implementations in the lettings sector to date. Nexus availability began on Monday, offering immediate support to landlords as MTD for Income Tax Self Assessment became mandatory in April 2026 for landlords with rental income exceeding £50,000. The income threshold will reduce to £30,000 in April 2027 and further to £20,000 in April 2028.

How Nexus supports landlords and agents with MTD compliance

Nexus is tailored specifically for agent-managed portfolios, addressing the complexity landlords face in meeting HMRC’s digital tax reporting rules. By linking directly to letting agent software, Nexus automatically pulls together all relevant financial data, including rent received, fees charged by agents, and expenses incurred. This integrated approach reduces errors and administrative burden, providing landlords with a clearer, more accurate picture of their taxable income.

For letting agents, Nexus offers a practical tool to support clients through the evolving tax landscape. Agents can continue managing properties as usual while having confidence that their landlords’ tax reporting obligations are met efficiently. The software’s design reflects an understanding of the letting sector’s operational realities, where landlords often rely heavily on agents for financial management. The partnership with LRG ensures that Nexus is accessible across a broad swathe of the UK lettings market, facilitating widespread adoption.

Context of Making Tax Digital for landlords

Making Tax Digital for Income Tax Self Assessment was introduced by HMRC to modernise tax reporting and improve accuracy. Landlords with rental income above £50,000 were required to comply from April 2026, with the threshold lowering over subsequent years. The phased approach aims to bring more landlords into the digital reporting regime gradually, allowing time to adapt.

MTD requires landlords to keep digital records and submit quarterly updates to HMRC, replacing the traditional annual self-assessment tax return process. This change has significant implications for landlords and letting agents, especially those managing multiple properties or portfolios. The administrative demands can be considerable, particularly for smaller landlords unfamiliar with digital accounting tools.

Many landlords rely on letting agents to handle rent collection and property management, making agent-managed solutions like Nexus highly relevant. These tools help bridge the gap between letting agency operations and HMRC’s digital requirements, reducing the risk of non-compliance and associated penalties.

Practical implications for landlords and letting agents

For landlords using LRG’s agent-managed services, Nexus offers a streamlined route to meet MTD obligations without disrupting existing management arrangements. Landlords no longer need to manually collate rental income and expenses from multiple sources each quarter. Instead, they can rely on Nexus to generate MTD-compliant financial summaries automatically.

Letting agents benefit by enhancing their service offering, providing landlords with practical support on tax compliance. This can strengthen client relationships and reduce queries related to tax reporting. Agents will need to ensure their software systems are fully integrated with Nexus and that staff are trained to assist landlords with its use.

As the MTD income threshold reduces in 2027 and 2028, more landlords will become subject to digital reporting requirements. Early adoption of solutions like Nexus can ease the transition and help avoid last-minute compliance challenges. Agents and landlords should begin reviewing their current record-keeping and financial reporting processes to identify any gaps or inefficiencies.

Remaining uncertainties and considerations

While Nexus addresses many practical challenges of MTD compliance, some uncertainties remain. The detailed technical requirements of quarterly submissions may evolve as HMRC refines its guidance and systems. Landlords with mixed portfolios or complex income streams may still face difficulties reconciling records digitally.

The impact of MTD on smaller landlords, particularly those managing properties without agent support, is also a concern. These landlords may require additional tools or advice to meet obligations. The effectiveness of Nexus and similar platforms will depend on ongoing updates and user support to keep pace with regulatory changes.

Letting agents should monitor HMRC announcements closely and maintain communication with landlords about upcoming threshold changes and compliance deadlines. Ensuring all parties understand their responsibilities and have access to appropriate technology will be critical to smooth implementation.

What landlords and agents should do now

Landlords using agent-managed services should check whether their letting agent is part of the LRG network offering Nexus and discuss how the software will support their MTD reporting. Reviewing current financial record-keeping and ensuring all rental income and expenses are accurately captured will facilitate a smoother transition.

Letting agents should assess their software integrations and staff readiness to support Nexus usage. Providing clear guidance to landlords about the MTD requirements and the benefits of digital reporting tools will help build confidence and compliance. Agents may also want to consider additional training or resources to handle landlord queries effectively.

Both landlords and agents should keep abreast of the reducing income thresholds for MTD and prepare for the broader rollout in 2027 and 2028. Early engagement with digital tax solutions can reduce administrative pressures and the risk of penalties for late or incorrect submissions.

Supporting landlords with compliance through TLA membership

Membership of The Landlord Association (TLA) offers landlords and letting agents access to practical compliance resources and support relevant to Making Tax Digital. TLA’s developing ORBIT platform, currently in BETA testing, aims to help members organise property and portfolio information, manage rental documents and records, and keep evidence of compliance activity in one place. While ORBIT does not yet provide direct MTD reporting, its tools for recording key actions and managing documentation can assist landlords and agents in preparing for and meeting digital tax obligations.

Exploring TLA membership can provide landlords with up-to-date guidance on MTD requirements, as well as access to compliance checklists and document templates. Letting agents may benefit from TLA’s resources to support their clients through the changing tax landscape. ORBIT’s integration of property management and compliance information offers a promising foundation for future enhancements tailored to digital tax reporting.

Members can review TLA’s compliance resources and learn more about ORBIT BETA access to strengthen their readiness for MTD and other regulatory changes.

Looking ahead, the expanding scope of Making Tax Digital will require ongoing adaptation by landlords and agents. Early adoption of dedicated software solutions and engagement with specialist support bodies like TLA will be vital to managing these new obligations effectively.

Sources: Letting Agent Today