Majority of Landlords Confident Ahead of Making Tax Digital Deadline

With just a month until the Making Tax Digital (MTD) scheme becomes compulsory for certain landlords, a new report from Wolters Kluwer Tax & Accounting shows that four in five landlords (80%) feel prepared for the changes. This is significantly higher than the 64% of sole traders who report feeling ready for the digital tax reporting requirements. From April 2026, landlords with rental income exceeding £50,000 will need to keep digital records and submit quarterly updates to HM Revenue & Customs (HMRC) using approved MTD-compliant software.

Understanding and Perceptions of Making Tax Digital

The Wolters Kluwer research highlights that around two-thirds (66%) of landlords are familiar with the specific requirements of Making Tax Digital. In contrast, nearly half of sole traders (46%) admit to knowing very little about what the scheme entails. This suggests landlords are engaging more actively with the upcoming digital tax obligations, possibly due to the direct impact on their rental income and property businesses.

Bas Kniphorst, executive vice president and managing director of Wolters Kluwer Tax & Accounting Europe, commented: “Making Tax Digital represents a fundamental shift in how individuals manage and report their tax affairs, and this research shows that while landlords are largely on track, many sole traders still feel uncertainty.” He emphasised the importance of turning awareness into action as the April 2026 deadline approaches, supported by clear guidance, appropriate technology, and trusted professional advice.

Strategic Benefits Recognised by Landlords

The report also reveals that landlords are more likely than sole traders to recognise strategic advantages in adopting MTD. For example, 44% of landlords see benefits such as improved financial forecasting and data analysis, compared to only 14% of sole traders. Additionally, 40% of landlords believe MTD will increase bookkeeping efficiency, while this view is held by 32% of sole traders.

These perceptions indicate that landlords may be better positioned to leverage digital tax tools to enhance their financial management and operational efficiency. However, the extent to which these benefits will materialise in practice remains subject to individual circumstances and the quality of software and advice used.

Concerns Over Practical Benefits and Costs

Despite the reported preparedness, some experts remain sceptical about the practical advantages of Making Tax Digital for landlords. Simon Misiewicz, an accountant previously quoted by Property118, stated: “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 explained that submitting quarterly returns does not provide a cash-flow benefit, as HMRC does not process these until the end of the tax year, and taxes are not payable earlier. This suggests that while MTD may improve record-keeping, it may not significantly change the timing or amount of tax payments for landlords.

The government’s own Making Tax Digital impact assessment acknowledges that landlords earning over £50,000 could face transitional costs averaging £285, plus additional annual costs around £115. These expenses reflect the investment required in compliant software and potentially professional support.

What This Means for UK Landlords

For landlords in the private rented sector, the findings underline the importance of preparing for Making Tax Digital well ahead of the April 2026 deadline. Familiarity with the scheme’s requirements and investing in suitable software can help ensure compliance and may offer operational benefits such as improved bookkeeping and financial insight.

However, landlords should also be aware of the associated costs and the limited immediate cash-flow advantages. Seeking professional advice and clear guidance will be crucial to navigating the transition effectively.

Suggested internal link anchors

• Making Tax Digital
• landlords’ tax obligations
• digital record keeping
• HMRC quarterly updates
• tax compliance costs
• financial forecasting for landlords
• bookkeeping efficiency
• property income tax
• landlord professional advice
• private rented sector regulations

TLA update

TLA is launching a new Trusted Partners Hub in Q1 2026, featuring verified and approved service providers selected to support landlords, tenants, and property management businesses. We are inviting legal, trades, insurance, financial, mortgage, tenant screening, and other service providers to register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/