Bookkeeping Tips for Shopify and TikTok Shop Sellers
MTD for Landlords: What You Need to Prepare
Making Tax Digital, commonly known as MTD, is changing the way many landlords report income and expenses to HMRC.
If you receive property income, you may need to keep digital records, use compatible software and send quarterly updates to HMRC, depending on your qualifying income.
When does MTD affect landlords?
MTD for Income Tax is being introduced in phases. HMRC confirms the following start dates:
| Qualifying income | Start date |
|---|---|
| More than £50,000 | 6 April 2026 |
| More than £30,000 | 6 April 2027 |
| More than £20,000 | 6 April 2028 |
These thresholds apply to qualifying income from self-employment and property.
What does MTD mean for landlords?
MTD does not simply mean filing one tax return online. HMRC explains that landlords and sole traders using MTD will need to use compatible software, create digital records, send quarterly updates every three months and then submit their tax return using software.
This means landlords should start preparing early instead of waiting until the deadline.
What records will landlords need to keep digitally?
HMRC guidance states that landlords need to create and store digital records of UK property income received and property expenses incurred. Examples include rent received and property expenses such as repair costs.
You should prepare records for:
- Monthly rental income
- Letting agent statements
- Repairs and maintenance
- Insurance
- Mortgage interest statements
- Service charges and ground rent
- Cleaning and gardening
- Property management fees
- Legal and professional fees
- Bank charges relating to the rental property
Why landlords should prepare now
Many landlords currently keep records in paper folders, bank statements, spreadsheets or WhatsApp messages. Under MTD, this may not be enough unless your records are properly maintained in compatible software or a compliant digital process.
Preparing now can help you:
- Avoid rushed setup
- Reduce errors
- Keep better rental records
- Track profit more clearly
- Make quarterly updates easier
- Avoid missing important income or expenses
Do landlords still submit a tax return?
Yes. HMRC guidance confirms that under MTD, taxpayers still submit one tax return every tax year and pay their tax bill by 31 January following the end of the tax year.
The difference is that digital records and quarterly updates become part of the process.
Need help preparing for MTD?
Gondal Accountancy can help landlords move from paper records or spreadsheets to a proper MTD-ready system.
Disclaimer
The content of this blog is provided for general information purposes only and should not be treated as tax, accounting, legal or financial advice. Tax rules, accounting requirements, legislation, regulations and official guidance can be complex and may change over time. As a result, some information in this article may become outdated, incomplete or no longer applicable after the date of publication.
The application of any tax, accounting or legal rule will depend on your individual or business circumstances. Before making any decision or taking any action based on the information in this article, you should seek advice from a suitably qualified tax professional, accountant, solicitor or financial adviser.
Gondal Accountancy and its staff accept no responsibility or liability for any loss, action taken, or decision made or not made as a result of relying on the information contained in this blog.
