Making Tax Digital is no longer a distant regulatory concept. For landlords with property income exceeding £50,000 annually, the April 2026 deadline marks a fundamental shift in how you’ll report your earnings to HMRC. The question isn’t whether you need to prepare—it’s whether you’ve started.
The first wave of MTD for Income Tax Self Assessment (MTD ITSA) targets landlords and self-employed individuals whose gross qualifying income from the 2024/25 tax year surpasses the £50,000 threshold. This is a crucial distinction: it’s not about your profit after expenses—it’s your total rental income before any deductions. If you own multiple properties generating combined gross income above this figure, you’re in scope, and the clock is ticking.
📌 The £50,000 threshold is based on gross qualifying income from your 2024/25 tax year—not profit. Combined rental income from all properties counts, regardless of your net position after expenses.
What MTD Actually Requires
Under the new regime, annual self-assessment returns become insufficient. Instead, you’ll submit quarterly updates to HMRC through MTD-compatible software, providing a rolling picture of your income and expenses throughout the tax year. This represents a significant operational change for landlords accustomed to gathering receipts once a year and handing everything to their accountant in January.
The software requirement is non-negotiable. HMRC will no longer accept manual submissions or spreadsheet uploads for those within scope. Your accounting system must be MTD-compliant, digitally linking your records to HMRC’s systems. Platforms like Xero, QuickBooks, and FreeAgent have already built these capabilities, but the integration needs to be properly configured by someone who understands both the technology and the compliance requirements.
⚠️ Critical Compliance Warning
From April 2026, landlords and self-employed individuals mandated into MTD will no longer be able to use the HMRC online portal to file their tax returns. You must use MTD-compatible software such as Xero, QuickBooks, or FreeAgent. There is no alternative. If you’re currently filing via the HMRC website, that option will be permanently closed to you once you’re in scope.
The Cost of Inaction
Penalties for non-compliance are structured to escalate. Late submissions attract points-based penalties, and repeated failures can result in financial sanctions that far exceed the cost of proper preparation. Beyond the regulatory risk, there’s the operational disruption of scrambling to implement systems under pressure rather than methodically transitioning while you have time.
The landlords who will navigate this transition smoothly are those taking action now—not in March 2026 when accountants are overwhelmed and software providers are stretched thin. Early preparation means time to clean up historical records, establish efficient digital workflows, and identify any complications before they become urgent problems.
Your Next Step
At HS Global Accountancy, we’ve been preparing our landlord clients for MTD since the regulations were announced. We understand property portfolios, we’re certified in all major MTD-compliant software platforms, and we’ve built streamlined onboarding processes specifically for landlords facing this transition.
Whether you’re confident you’re above the threshold or uncertain about your obligations, a five-minute conversation can provide clarity. Our Instant Quote tool gives you an immediate indication of what full MTD compliance would cost for your specific situation—with no obligation and no sales pressure.
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