What this means

This isn’t just another bit of red tape. It’s a fundamental shift in how property owners will manage taxes going forward. Making Tax Digital for Income Tax means switching to digital record-keeping, sending quarterly updates, and submitting your figures via special software – no more spreadsheets, no more manual submissions.

If that sounds overwhelming, you’re not alone. But the good news? Support is already here, and there’s time to get ahead. We have linked up with HMRC to get advice on this this will work and what you need to do in the coming months.

Does this apply to everyone?

No – if you pay your tax through a Ltd company this will not apply to you.

What are the specific dates?

• From 2026 – if your property income is £50,000+
• From 2027 – extended to those earning £30,000+
• From 2028 – for landlords earning £20,000+

How often will I need to report?

Either you or your accountant will need to provide ¼ updates plus one Final Declaration at the end of the tax year. If you miss the deadlines HMRC will introduce a points-based penalty system. Four points = fines.

What you’ll need to do

If you wish to carry this out yourself HMRC are starting to provide details of the software that will be compatible with MTD. To date there is no record-keeping software available from HMRC, so it will be necessary to use a commercial system you feel is suitable for you.

Therefore, the best suggestion is to begin to look at the systems suggested and find out which one suits your needs. The most important thing to remember is that all records must now be digital – paper files or spreadsheets won’t cut it.

If you work with us the monthly statement, we provide information will be fine for submission.

How we’re helping owners prepare

We know these changes may feel daunting. That’s why we shall now be advising of any information that comes from HMRC and will be offering free informal training sessions that help you:

• Understand the changes in plain English
• Discover which software is available
• Helping you to understand the questions you need to be asking of the software
• Know when you need to act and what steps to take

As we specialise in residential lettings, and we’ve supported hundreds of owners throughout years deal with, licensing shifts, compliance updates and more. We are also reviewing if our CRM (software ) system and can provide information in multiple formats upon request.

And whilst we are talking tax, what are your allowable expenses?

We are not accountants and therefore the list below is what we suggest you discuss from your own accountant as they will be more aware for your own situation. In essence allowable expenses are basically expenditure which is incurred ‘wholly and exclusively’ for the purposes of the rental ‘business’.

Typical allowable expenses for a rental property include:

• The cost of repairs and renewals which are necessary to maintain the property in a suitable condition to let out. (Note that if you spend money on improving a property, such as adding an extension, or have to do work to the property to make it suitable to rent out when you first let it, this is not allowable for income tax purposes).
• Costs of finding a tenant, such as advertising
• Legal costs on the renewal of a letting agreement
• Letting agents’ fees, if you use one
• Re-decorating
• Council tax and water charges
• Costs on replacing furnishings, appliances and kitchenware in the property.
• Costs of disposing of the old asset

Register today for our informal MTD training courses – designed specifically for residential property owners like you.

Reserve your place now – we shall only be running small in house groups.