From April 2026, major changes are coming to how many UK landlords report their income to HMRC. The government's Making Tax Digital (MTD) initiative is expanding, and it will affect landlords who earn above certain income thresholds from property.
If you currently keep spreadsheets, paper records, or submit a single annual Self-Assessment tax return, the new system will change how you track and report your rental income.
Here's what landlords need to know before the new rules begin.
What Is Making Tax Digital (MTD)?
Making Tax Digital is a government initiative led by HMRC designed to modernize the UK tax system. The goal is to make tax reporting more accurate, efficient, and easier by requiring taxpayers to keep digital records and submit updates electronically.
Instead of submitting information once a year, landlords under MTD will be required to maintain digital records and send updates to HMRC more regularly.
For many landlords, this means moving away from manual record-keeping and adopting digital tools to manage property finances.
Who Will Be Affected?
From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will apply to landlords whose combined income from property and self-employment exceeds £50,000 per year.
The rollout will then expand further:
This means a large number of UK landlords will soon need to comply with the new digital reporting requirements.
What Will Landlords Need to Do?
Under MTD rules, landlords must change how they manage tax records and reporting.
Key requirements include:
Keeping Digital Records
Landlords must keep digital records of rental income and expenses instead of relying on paper or manual bookkeeping.
Quarterly Updates
Instead of submitting one annual tax return, landlords will need to send quarterly updates to HMRC summarising income and expenses.
End-of-Year Final Declaration
At the end of the tax year, landlords will still need to confirm their total income and tax obligations through a final declaration.
While the goal is to improve accuracy, this also means landlords will need better organisation and consistent record-keeping throughout the year.
Why Many Landlords Are Concerned
For landlords who manage properties themselves, the new requirements may initially feel overwhelming.
Some of the most common concerns include:
Without the right systems in place, it can become easy to fall behind on reporting or miss important information.
Why Digital Property Management Matters
As rental regulations become more complex, landlords are increasingly turning to digital tools to manage their properties more efficiently.
A property management platform can help landlords stay organised by tracking:
By keeping information centralised and easy to access, landlords can prepare financial records more easily when reporting to accountants or submitting tax updates.
How Propell Helps Landlords Stay Organised
Propell provides landlords with a centralised platform to manage property finances and key compliance tasks.
Key features include:
By keeping all property data in one place, landlords can save time, reduce admin, and stay better prepared for the new Making Tax Digital requirements.
Preparing for April 2026
With Making Tax Digital expanding this April, landlords who haven't yet adopted digital tools may want to start preparing now.
Getting organised early will make the transition smoother and help avoid last-minute stress when the new reporting requirements come into effect.
For landlords looking for a simpler way to manage their properties and finances, digital tools like Propell can help ensure they stay compliant and in control.
Frequently asked questions
What is Making Tax Digital (MTD)?
Making Tax Digital is a government initiative led by HMRC designed to modernise the UK tax system. It requires taxpayers to keep digital records and submit updates electronically, so landlords send updates to HMRC more regularly instead of once a year.
Who will be affected and when?
From April 2026, MTD for Income Tax Self Assessment applies to landlords whose combined income from property and self-employment exceeds £50,000 per year. From April 2027 it expands to those earning over £30,000.
What will landlords need to do under MTD?
Landlords must keep digital records of rental income and expenses, send quarterly updates to HMRC summarising income and expenses, and confirm their total income through an end-of-year final declaration.
Do landlords still need an end-of-year declaration?
Yes. At the end of the tax year, landlords will still need to confirm their total income and tax obligations through a final declaration.
How should landlords prepare for April 2026?
Landlords who haven't yet adopted digital tools may want to start preparing now. Getting organised early makes the transition smoother and helps avoid last-minute stress when the new reporting requirements come into effect.
From Propell
Get MTD-ready with Propell
Propell keeps your income and expenses organised and export-ready, so quarterly Making Tax Digital submissions are simple.
