The way Landlords report their income to HMRC is changing. From April 2026, all unincorporated landlords with combined self-employed &/or rental income above £50,000 will be required to follow Making Tax Digital (MTD) rules for Income Tax.
If you’re a Landlord, it’s important to understand what this means, when it applies, and how you can start preparing now. At Pat Robson & Co., we’re here to make the transition as seamless as possible.
What Is Making Tax Digital?
Making Tax Digital is a UK government led programme by HMRC that aims to modernise the tax system by requiring self-employed and Landlords to keep digital records and submit digitally to the HMRC, on a quarterly basis.
Who Is Affected By Making Tax Digital?
If you receive qualifying income from self-employment and/or property, you’ll be legally required to use Making Tax Digital for Income Tax. As of April 2026, the qualifying income will be £50,000 per annum, based on your qualifying income from 2024-25 tax year .
When Does This Become A Requirement?
HMRC are implementing this change to the way Self-employed and Landlords submit their tax returns from April 2026. This will apply to all who earn over £50,000, which is the qualifying amount. Further changes are planned for 2027 & 2028, which have been outlined by HMRC, where they intend to reduce the qualifying income further to £30,000 & £20,000 respectively.
What Do I Need To Do As A Landlord To Prepare For Making Tax Digital?
In order to prepare for the upcoming changes there are a few things you can do as a Landlord to prepare. Firstly, check to see if this change applies to you by visiting the HMRC website or clicking here. Secondly, speak to your accountant regarding how they can help with the management and submission of your accounts to HMRC. Thirdly, have your property managed by an Agent who is going to provide you with quarterly income and expenditure statements.
How Can Pat Robson & Co. Help?
As a part of our Property Management service, we will send a quarterly income and expenditure statement to all Landlords, in line with the deadlines set by HMRC. This, combined with your own booking of transactions that take place outside of our management of the property, will help you to complete your Making Tax Digital tax return.
We are currently offering 6 months FREE* Property Management, meaning there has never been a better time to join our managed service. To find out more about our range of Landlord services, click here. You can also contact our Property Management team on our dedicated Landlord line on 0191 20 90 100 – option 5. Alternatively, you can email us at [email protected]
*terms and conditions apply. Offer applies to all new instructions. Subject to a 12 month minimum contract.
