Making Tax Digital (MTD) is being rolled out for landlords (and the self-employed) in a phased approach starting from April 2026. This guide outlines what ASSC members need to know to prepare.
Who Does MTD Apply To?
- From April 2026: Landlords and self-employed with combined gross property and/or business income over £50,000 must comply.
- From April 2027: This threshold reduces to £30,000
- The thresholds apply to the previous tax year, so if you breach the thresholds in 2024/25 being £50,000 then you must start MTD reporting in 2025/26.
Important: Gross property income means before expenses – including any agent or management fees.
MTD applies to income from:
- Residential lets
- Commercial properties
- Serviced accommodation (including short-term lets)
- Income from self-employment
Digital Record-Keeping Requirements
Landlords must keep digital records of income and expenses. This can be done using MTD-compliant software such as:
- QuickBooks
- Xero
- Sage
- FreeAgent
- Hammock
- Spreadsheets with suitable bridging software
Or, you can use an accountant who can manage submissions for you.
What Will You Need to Submit?
You’ll report to HMRC every quarter, plus an end-of-year MTD Tax Return
Quarterly Updates Must Include:
- Start date of the period (either fixed standard quarters — 6th April, 6th July, 6th October, and 6th January — or elected calendar quarters, e.g., 1st April, 1st July, etc.)
- End date of the period
- Totals for both income and expenses
Deadline for submissions is the 7th of the month following end of each quarter—i.e. 7th August, 7th November, 7th February, and 7th May.
What Counts as Property Income?
- Gross rental income
- Other property-related income
- Premiums for granting a lease where income tax treatment applies
- Reverse premiums and inducements
What Counts as Property Expenses?
- Rent, rates, insurance, ground rents
- Repairs and maintenance
- Finance costs (residential and non-residential)
- Legal, management, and professional fees
- Services provided (including wages)
- Travel expenses
- Other allowable expenses
Jointly Owned Properties
For jointly owned properties, your quarterly report must still include:
- Start and end dates of the update period
You then have two options for reporting:
- Full quarterly breakdown of both income and expenses; or
- Report income only quarterly and submit expense totals at the year-end MTD Tax Return.
Next Steps for ASSC Members
- Review your current property income – will you meet any of the MTD income thresholds?
- Start preparing for digital record-keeping ahead of time.
- Sign up for MTD before the relevant start date.
- Talk to your accountant or explore MTD software options.
- Keep an eye on ASSC updates for further guidance and support.
Author of Guidance: ASSC and EQ Accountants
Contact: Scott Greig, Scott.Greig@eqaccountants.co.uk
Date of Guidance: Updated February 3rd 2026
Version Number: V2
Disclaimer – Guidance Sheets are written by experienced Members of the ASSC and other experts. The information in the ‘Guidance Sheet’ is provided by the ASSC for use by Members in support of their own independent business decisions. It does not constitute advice or instruction for which the ASSC can be held liable in any way whatsoever. All Members and other readers remain responsible for the consequences of any decisions taken whether in the light of information gained from this Guidance Sheet or not.