⚠️ APRIL 2026 DEADLINE
MTD for Landlords: Your Complete Compliance Solution
If your rental income exceeds £50,000, the April 2026 deadline affects you. We’ll get you compliant—without the stress.
What Making Tax Digital Actually Means
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) changes how landlords report property income to HMRC. Instead of filing one annual Self Assessment return, you’ll need to:
- Keep digital records of all rental income and expenses
- Submit quarterly updates to HMRC (not full tax returns—just summaries)
- Use compatible software that connects directly to HMRC systems
- File a final declaration at year end, replacing your current Self Assessment
This isn’t optional. If you’re in scope, the paper-based system closes for you from April 2026.
Do You Need to Comply? The Thresholds
MTD for landlords rolls out in phases based on your gross rental income (before expenses):
| Tax Year | Income Threshold | Mandatory From |
|---|---|---|
| 2024/25 | Over £50,000 | 6 April 2026 |
| 2025/26 | Over £30,000 | 6 April 2027 |
| 2026/27 | Over £20,000 | 6 April 2028 |
Important: It’s gross income that counts, not profit. If your properties generate £60,000 in rent but you have £40,000 in expenses, you’re still in scope for April 2026 based on the £60,000 figure.
Multiple properties? All rental income is combined. Three properties generating £20,000 each means £60,000 total—you’re in the first wave.
The Quarterly Reporting Calendar
Under MTD, your tax year is divided into four quarters. After each quarter ends, you have roughly one month to submit your update:
| Quarter | Period | Submission Deadline |
|---|---|---|
| Q1 | 6 April – 5 July | 7 August |
| Q2 | 6 July – 5 October | 7 November |
| Q3 | 6 October – 5 January | 7 February |
| Q4 | 6 January – 5 April | 7 May |
After Q4, you’ll file a final declaration (similar to your current Self Assessment) by 31 January of the following year.
What’s in a quarterly update? A summary of income received and expenses paid during that quarter. It’s not a full tax calculation—just data submission. The actual tax calculation happens at year end.
Software Requirements
HMRC won’t accept manual submissions or spreadsheet uploads from those in scope. You need MTD-compatible software that:
- Maintains digital records of income and expenses
- Connects to HMRC’s MTD systems via API
- Submits quarterly updates and the final declaration
Options include:
- Xero, QuickBooks, FreeAgent – General accounting platforms with MTD modules
- Landlord Studio, Hammock, Arthur – Property-specific platforms
- Bridging software – If you want to keep spreadsheets but need HMRC connectivity
We’re certified partners with Xero and QuickBooks. We’ll recommend the right solution based on your portfolio size and complexity.
What Happens If You Don’t Comply?
HMRC’s penalty regime for MTD uses a points-based system:
- Late submission: 1 point per missed quarterly deadline
- Threshold: Reach 4 points and you receive a £200 penalty
- Points expire after 24 months of compliance
Late payment penalties are separate and based on the tax owed, not the submission.
Beyond penalties, there’s the practical issue: if you’re in scope but not set up, you’ll be scrambling to implement systems under pressure while potentially falling behind on submissions from day one.
How We Help Landlords Get MTD-Ready
Setup & Onboarding
- Software selection based on your needs
- Account configuration and bank feed setup
- Migration of historical records
- HMRC MTD registration
Ongoing Compliance
- Quarterly update preparation and submission
- Expense categorisation and record-keeping
- Year-end final declaration
- Tax payment reminders
Advisory
- Tax planning for rental portfolios
- Incorporation analysis
- Capital allowances review
- Mortgage interest relief strategies
Our fixed monthly packages mean no surprise bills. You know exactly what compliance costs.
Ready to Get MTD-Compliant?
The landlords who’ll handle this transition smoothly are those preparing now—not in March 2026.
Our free MTD assessment takes 5 minutes. We’ll confirm your position and explain your options.
MTD for Landlords: Frequently Asked Questions
Do I need to comply with MTD if my rental income is below £50,000?
Not yet. From April 2026, only landlords with gross property income over £50,000 must comply. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. We recommend preparing early if you are close to these thresholds.
Is the £50,000 threshold based on rental profit or total income?
It is based on your gross rental income — the total rent received before any expenses. If your properties generate £60,000 in rent but you have £40,000 in costs, you are still in scope based on the £60,000 figure.
What software do I need for Making Tax Digital?
You need HMRC-compatible software that can submit quarterly updates digitally. We work with Xero, QuickBooks, and FreeAgent. For landlords, property-specific platforms like Hammock are also an option. We recommend the best fit based on your portfolio size.
Can I still use spreadsheets to track my rental income?
You can use spreadsheets for your own records, but you cannot submit directly to HMRC from Excel. You will need bridging software or, ideally, fully integrated accounting software. We can help migrate your data.
What happens if I miss a quarterly submission deadline?
HMRC uses a points-based penalty system. Each late submission adds one point. Reach four points and you receive a £200 penalty. There is a 12-month grace period in Year 1 (2026/27) where penalty points will not be issued.
How much does MTD compliance cost with HS Global?
Our self-employed packages start from £39/month and include software setup, quarterly submissions, and year-end declarations. Get a personalised quote at our instant quote calculator.