If you're a UK landlord with one or two rental properties, Making Tax Digital (MTD) for Income Tax changes how you keep records — and when you report them. Here's the plain-English version of what changes, and what you actually need to do before April.
Who MTD applies to
MTD for Income Tax applies to landlords and sole traders whose combined self-employment and property income is at or above £50,000. From 6 April 2026, if you're in scope, you must keep your records digitally and send quarterly updates to HMRC through recognised software — replacing the single annual Self Assessment entry for your income and expenses.
What "digital records" actually means
A digital record isn't complicated. It means your income and expenses are held in a digital format — a spreadsheet that meets HMRC's rules, or software designed for MTD. Paper notebooks and shoeboxes of receipts no longer count as your primary record. The key is that each transaction is recorded with the date, amount, and category, and that the records can be sent to HMRC through software.
The quarterly rhythm
Instead of one year-end filing, you'll tell HMRC what your income and expenses were every quarter. Each update covers a fixed period, and you have until the end of the month following each quarter to submit it. The update is a summary of what you've recorded — not a payment. Tax payments continue on the normal Self Assessment dates.
What to do before the deadline
- Work out whether your gross rental income puts you in scope — don't rely on profit, use gross income.
- Get your record-keeping into a compliant digital format now, while there's no deadline pressure.
- Choose HMRC-recognised software that fits a one- or two-property portfolio. You don't need the most expensive plan.
- Decide whether you'll file the quarterly updates yourself or hand the process to an accountant.
The transition is less about complexity and more about rhythm. Landlords who set up a simple process before the deadline find the quarterly updates take minutes, not hours.