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Report maintenance Making Tax Digital (MTD) for Landlords
What Bristol Landlords Need to Know Before 2026.
The way in which residential landlords report their rental income is due to change dramatically from 2026. The government’s initiative, Making Tax Digital (MTD), will modernise the tax system, changing the way annual Self-Assessment is submitted, with digital records, quarterly updates and an end-of-year declaration.
This means new software, new processes and new deadlines for many landlords, especially those whose portfolios are expanding or who have additional self-employment income.
Below is a clear, landlord-friendly guide to what MTD is, who it affects, and how to start preparing now.
What is Making Tax Digital?
Making Tax Digital is HMRC’s long-term plan to move people away from paper forms and annual tax returns. Instead, anyone who meets the thresholds will need to:
- Keep digital records of rental income and expenses
- Use MTD-compatible software.
- Send quarterly updates to HMRC
- Complete a final year-end declaration
MTD is designed to make your tax more accurate and up to date – but it also means a fundamental change in how landlords organize record-keeping.
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Who Does MTD Apply To?
Read MoreWhether you need to follow MTD depends on your qualifying income, which is your gross property income plus any self-employment income.
Other sources of income are excluded: salary, dividends, pensions.
Roll-out dates
Qualifying income (gross, before expenses) MTD rules apply from
- £50,000+ in the 2024/25 tax year 6 April 2026
- £30,000+ in the 2025/26 tax year 6 April 2027
- Expected £20,000+ (pending legislation) Likely from April 2028
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Key notes for landlords
Read More- MTD applies only to the individuals reporting property income personally.
- This version of MTD does not apply if your rentals are held in a limited company.
- Joint landlords are taxed individually on their respective share of the income.
- Even if you are below the threshold, you might voluntarily be opting-in.
What Landlords Will Need to Do Under MTD
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1. Sign up for MTD
Read MoreYou need to register with HMRC, or your accountant can do this on your behalf, before the start date that applies to you.
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3. Quarterly updates
Read MoreEvery three months you’ll send a summary of your income and expenses. Typical deadlines are:
- 7 August
- 7 November
- 7 February
- 7 May
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5. Keep proper digital records
Read MoreYou do not have to submit receipts unless HMRC asks, but you must keep digital records of income and expenses.
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2. Use MTD-compatible software
Read MoreSpreadsheets won’t be sufficient by themselves.
You must either:
- use software that connects directly to HMRC, or
- use a spreadsheet plus “bridging software”
Most landlords prefer fully integrated tools such as Xero, QuickBooks, FreeAgent, or Landlord Studio.
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4. Filing of a final annual declaration
Read MoreThis replaces the traditional annual Self-Assessment submission process. It finalises your income, claims allowances, and calculates your tax bill.
Key Dates for Your Calendar
- 6 April 2026
Landlords whose qualifying income is £50,000+ must comply with MTD.
- 6 April 2027
Landlords with qualifying income of £30,000+ are obliged to join the system.
- From 2028 (planned)
Likely extension to those earning £20,000+, subject to legislation and confirmation by HMRC.
What This Means for Landlords
Benefits
- Reduces last-minute January tax stress
- More accurate record-keeping
- A clearer picture of your rental finances throughout the year
- Easier collaboration with letting agents and accountants
Challenges
- Choosing and learning new software
- More frequent bookkeeping
- Quarterly deadlines instead of annual
- Initial time investment to digitize records
Why this matters for Bristol landlords
With rising rents and larger portfolios becoming more common, it’s now easier than ever for landlords to cross the £30,000-£50,000 threshold. Early preparation will make the transition far smoother.
How to Prepare Now
- Check your present rental income and see which threshold you meet.
- Choose MTD-compatible software and become accustomed to recording your income and expenses digitally.
- Keep receipts, invoices, and statements in one place.
- Ask your letting agent to provide you with clear monthly or quarterly statements aligned with MTD reporting.
- Discuss deadlines and best practices with your accountant.
- If you’re near a threshold, then again, voluntarily signing up will let you get ahead.
Landlords’ Top Questions About Making Tax Digital (MTD)
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Do I need MTD if my property is owned through a limited company?
Read MoreNo – MTD for Income Tax only applies to individuals not limited companies.
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Will I still need a Self-Assessment?
Read MoreYes. You will still file an annual declaration, but you will also send quarterly updates.
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Can I still use spreadsheets?
Read MoreYes, but only using bridging software. Most landlords find full MTD software easier.
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What if my income sometimes goes above or below the threshold?
Read MoreHMRC checks the previous year’s gross income; if you cross the threshold, you enter MTD the following year.
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Do I need an accountant?
Read MoreNot necessarily, but many landlords find one helpful for managing deadlines and year-end declarations.
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What about landlords with only one property?
Read MoreIt still depends entirely on income, not on how many properties you own.
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Should I register early?
Read MoreThe process can be smoother and less pressured later on by voluntarily signing up.
This article is provided for general information only and reflects our understanding of Making Tax Digital at the time of writing. It does not constitute tax or financial advice. Tax obligations vary depending on individual circumstances, and we recommend landlords seek advice from HMRC or a qualified accountant before making decisions.
