Meanwhile, the turn of spring also marks the start of the UK government’s long-anticipated Making Tax Digital for Income Tax Self Assessment (MTD ITSA) programme, signalling a major shift in how landlords report rental income to HMRC. The new requirements will be introduced from 6 April 2026.

So, what does MTD ITSA mean for landlords?

Here we answer some of the most frequently asked questions from our clients.

What is MTD ITSA?

MTD ITSA is part of HMRC’s wider digitalisation strategy aimed at reducing tax errors and improving reporting efficiency. From April 2026, landlords with combined property and self-employment income over £50,000 will be required to:

• Keep digital records of income and expenses
• Submit quarterly updates to HMRC via approved software
• File a final declaration at year-end to reconcile figures and claim allowances

The threshold will drop to those with a turnover of £30,000 in April 2027, and is likely to fall further to £20,000 in April 2028, meaning most landlords will eventually be brought into the system.

What will this mean for landlords?

The changes will mean that landlords must use HMRC-recognised software to maintain records. The new system replaces the traditional annual self-assessment return and introduces more frequent reporting. Landlords will need to provide quarterly update summaries by 7 August, November, February, and May, as well as a final declaration that will need to be submitted by 31 January following the tax year.

It will be your responsibility as a landlord to determine if you are in scope for MTD and to comply with all HMRC requirements. Further guidance is available here.

How should landlords prepare?

1. Assess your income: If your combined rental and self-employment income exceeds £50,000 (from rental and self-employment, excluding PAYE and pensions) you’ll be in the first wave. Speak to your accountant to confirm your status.
2. Choose your software: HMRC won’t provide its own platform. If you use an accountant, they will need to select compatible software or bridging tools that connect existing spreadsheets to HMRC’s systems. Further guidance can be found here.
3. Get organised early: Transitioning now to digital record-keeping of income and expenses will ease the burden later. Avoid the January scramble by adopting new habits ahead of time.
4. Understand exemptions: HMRC allows exemptions for those who are digitally excluded due to age, disability, religious beliefs, or lack of internet access. These must be applied for directly with supporting evidence.
5. Consult a professional: While MTD ITSA may feel daunting, early preparation is key. Landlords should consult their accountant or tax adviser to ensure compliance and avoid penalties. This is not a service we can provide, but we encourage all landlords to act now to ensure a smooth transition.

From new tenancy agreements under the RRA to digital income reporting, landlords are facing a raft of change this spring. As ever, if you are unsure of the implications, seek professional advice. Further guidance is available here: Making Tax Digital for Income Tax for sole traders and landlords: step by step

Further information

Contact Amelia Greene or Sapna Fraser