How does Making Tax Digital affect landlords?
Answered 11 March 2026
Making Tax Digital (MTD) and Landlords
What the law says
Who is in scope Schedule A1 of TMA 1970 (inserted by Finance (No.2) Act 2017) applies to any person within the charge to income tax who carries on a property business the profits of which are chargeable to income tax under Part 3 of ITTOIA 2005. The term "property business" in the Regulations carries the same meaning as in section 263(6) of ITTOIA 2005.
Core legal obligations — the "digital requirements" The Income Tax (Digital Requirements) Regulations 2021 (as amended in 2024 to push commencement to 6 April 2026) impose the following duties on every "relevant person" (i.e. a landlord in scope):
- Functional compatible software must be used to meet all digital requirements.
- Digital records must be kept for each property business from the digital start date. Records must capture the financial information included in update information, details of items, amounts, and dates received or incurred.
- Quarterly updates of summary income and expenses must be submitted to HMRC for each quarterly update period in each tax year.
- Corrections to digital records must be made as soon as possible after discovery of an error or omission, and corrected information must be provided to HMRC with the next quarterly update.
- Digital exclusion exemption: the digital requirements do not apply to a person who qualifies for the digitally excluded exemption.
Digital start date The digital start date for a business is 6 April in the year of assessment following the year of assessment in which the person was required to deliver a Self Assessment return.
HMRC guidance / practice
Background and phased rollout MTD was announced in the March 2015 Budget as a modernisation of the tax system. Legislation requires digital record keeping, at least 3-monthly updates of summary income and expenses, and an annual declaration for most self-employed businesses and landlords.
What landlords (and their agents) must do in practice According to HMRC guidance, once signed up, a landlord (or their authorised agent) must:
- Create, store and correct digital records of property income and expenses
- Send quarterly updates to HMRC
- Submit a tax return and pay tax due by 31 January the following year
Software Landlords must use third-party software to keep business records digitally and to submit business updates.
Annual declaration Customers are required to submit an annual declaration at the earliest of 31 January or 10 months after the end of their accounting period.
Agents An agent can only sign a landlord up to MTD for Income Tax if the landlord has registered for Self Assessment and already submitted a tax return.
Important caveat: The available sources do not contain the specific qualifying income thresholds (e.g. £50,000 / £30,000 / £20,000) that determine when a landlord is mandated to join MTD for Income Tax. For the precise threshold and mandation timetable, you should consult the GOV.UK MTD for Income Tax guidance or the relevant provisions of Schedule A1 TMA 1970 directly.
Citation sources
easonably expects that no update information will arise in respect of the period commencing with the provision date and ending with the end of the quarterly update period . PART 4 End of period statements Provision of end of period statements 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . End of period notices 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Specified information 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commencement
Citation and commencement 1 These Regulations may be cited as the Income Tax (Digital Requirements) (Amendment) Regulations 2024 and come into force on 14th March 2024. Amendment of the Income Tax (Digital Requirements) Regulations 2021 2 The Income Tax (Digital Requirements) Regulations 2021 are amended as follows. 3 In regulation 1, for “2024” substitute “2026” . 4 In regulation 2— a omit the following definitions— i “designatory information”; ii “end of period information”; iii “end of period
When authorised, your agent can: sign you up for Making Tax Digital for Income Tax create, store and correct digital records of your self-employment and property income and expenses send your quarterly updates to HMRC submit your tax return and pay tax due by 31 January the following year Find out more about Making Tax Digital for Income Tax.
PART 1 General Citation and commencement 1 These Regulations may be cited as the Income Tax (Digital Requirements) Regulations 2021 and come into force on 6th April 2026 . Interpretation 2 In these Regulations— “TMA 1970” means the Taxes Management Act 1970; “Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs; ... “digital records” has the meaning given by regulation 6; “the digital requirements” has the meaning given by regulation 3(1); “digital start date” has the mea
PART 4 Administration, avoidance and enforcement Reporting and record-keeping Digital reporting and record-keeping for income tax etc 60 1 TMA 1970 is amended as set out in subsections (2) and (3). 2 After section 12B insert— Digital reporting and record-keeping Digital reporting and record-keeping 12C Schedule A1 (digital reporting and record-keeping) has effect. 3 Before Schedule 1AA insert— SCHEDULE A1 Digital reporting and record-keeping Section 12C PART 1 Application Application: persons 1
that business. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The digital start date that applies to the business is 6th April in the year of assessment following the year of assessment in which the person was required to deliver the return. PART 2 Digital records Keeping and recording digital records 5 1 A relevant person must keep digital records for each business for the period beginning with the digital st
Your agent can sign you up to some tax services and create an authorisation request. If your agent signs you up for a tax service, sign in to your personal or business tax account to either: check that the service is displayed add the service to your account Your agent can only sign you up to Making Tax Digital for Income Tax if you have registered for Self Assessment and already submitted a tax return. If your agent cannot sign you up for a particular tax service, you need to: Sign up to each t
In the March 2015 Budget the government announced its vision for modernising the tax system in order to make it easier for individuals and businesses to get their tax right and keep on top of their affairs, meaning an alternative to the Self-Assessment tax return system. Changes were introduced gradually from April 2017 ahead of legislative changes introduced from April 2018 for businesses and landlords with a turnover exceeding the VAT registration threshold and from April 2019 for those with a