Landlords: Don’t get caught out by MTDfIT – What you need to do before April 2026

If you earn income from property, the countdown to Making Tax Digital for Income Tax (MTDfIT) has already begun. From April 2026, landlords with gross rental income above £50,000 will need to keep digital records and send quarterly updates to HMRC using compatible software.

It might sound like a small administrative change, but for many landlords it represents a major shift in how property income is managed and reported.

If you have not yet read my colleague Martin Bugg’s overview blog, It’s coming: Are you ready for Making Tax Digital for Income Tax (MTDfIT)?, it is a great place to start. Martin explains the rules, thresholds and timelines in detail.

This article focuses specifically on landlords and what you can do now to stay ahead of the changes.

Why landlords are more likely to be caught out

Many landlords manage their property income alongside other jobs, pensions or investments. Tax reporting is often something handled once a year, but MTDfIT will change that approach completely.

Under the new rules you will need to:

• Keep all your property income and expense records digitally
• Submit quarterly updates to HMRC instead of one annual return
• File a final declaration at the end of the year

If you own multiple properties or share ownership with others, your reporting may become more complex. Each property business must be tracked accurately and your software will need to reflect your exact ownership structure.

Why it pays to start early

Taking action now will save time and stress later. Software providers, accountants and landlords will all be preparing at the same time next year. Starting early allows you to understand your system, identify gaps and build confidence before the changes become mandatory.
You will also gain a clearer picture of how your property business is performing throughout the year, rather than waiting until the annual return.

What landlords should do now

1. Review your property income for 2024–25. If your gross property income exceeds £50,000, you will be in scope from April 2026.
2. Start keeping digital records. Even if you are not yet required to submit updates, start using compatible software to record transactions as they happen.
3. Choose the right software. You might not need a full accounting package. There are simpler digital tools designed specifically for landlords.
4. Speak to your letting agent. Check what information they can share digitally and whether it integrates with your chosen software.
5. Get professional advice. Your accountant can confirm your eligibility, help you test systems early and ensure your records meet HMRC standards.

We can help

At Larking Gowen, we are already supporting landlords with the transition to MTDfIT. Our team can review your income position, recommend suitable software and guide you through HMRC’s pilot scheme. We can support you at every stage of your MTDfIT journey, from assessing income thresholds and selecting software to providing ongoing assistance with quarterly submissions.

If you are unsure where to begin, contact your usual Larking Gowen adviser or email enquiry@larking-gowen.co.uk.

Keep an eye out for next month’s blog from Martin Bugg, where he will take a closer look at the digital tools available for MTDfIT and how to choose the right one for your needs.

Melanie Howard