Big changes are on the way for how tax is reported to HMRC… and if you’re a landlord, now’s the time to start getting prepared.
Making Tax Digital (MTD) will affect many landlords over the next few years, alongside freelancers and self-employed individuals. The biggest shift? Moving away from one annual tax return… to regular digital updates throughout the year.
We know that can sound like a lot. The good news is, you don’t have to figure it all out on your own.
At Love Your Let, we’re here to help you understand what’s changing, what it means for you, and how to approach it in a straightforward, manageable way.
MTD is being introduced in stages, depending on your total income from property and/or self-employment.
You’ll need to comply if your combined income is over £50,000.
This is based on income before expenses
It includes rental income plus any self-employed earnings
HMRC will usually assess this using your 2024–2025 tax return
Example:
£35,000 rental income + £20,000 freelance income = £55,000 → MTD applies from April 2026
If you jointly own a property, only your share of the income counts towards your total.
The threshold reduces to £30,000
Likely to reduce further to £20,000
Instead of submitting one tax return per year, you’ll need to:
Keep digital records of your income and expenses
Submit quarterly updates to HMRC
Complete a final year-end declaration
The first quarterly deadline will be 5 August 2026 for those in the initial phase.
Late submissions may result in penalties, so being organised early will make a big difference.
HMRC is aiming to create a more modern, accurate system.
The traditional approach (one return submitted long after the tax year ends) can lead to:
Errors and missed information
Lost paperwork
A lack of clarity around tax owed
Making Tax Digital is designed to move things towards a more real-time, digital process.
From our conversations with landlords, the biggest concern isn’t understanding the rules… it’s the practical side of keeping up with them.
MTD requires you to submit information using compatible digital software. This means:
Spreadsheets and email records alone won’t be enough
Data needs to be recorded and submitted in the correct format
For many landlords, this raises questions around:
Which software to choose
How to keep records up to date
How much time it will take each quarter
While we don’t provide or operate Making Tax Digital software ourselves, we play an important role in making the process much easier for the landlords we manage properties for.
Here’s how we help:
We provide regular, detailed statements for your rental income and costs - giving you a solid, accurate foundation for your reporting.
Through your landlord portal, you can easily access statements, invoices, certificates and key documents whenever you need them.
We’ll help you understand what’s required, when deadlines are approaching, and how to stay on track… without unnecessary stress.
We can liaise with you and your accountant, ensuring they have the information they need to complete your submissions efficiently.
With the right support, Making Tax Digital doesn’t have to feel overwhelming.
In fact, many landlords find that once they’re set up properly, it can lead to:
Better organised records
A clearer view of their finances
Less pressure at the end of the tax year
The key is having the right structure and support around you.
At Love Your Let, we’re here to make being a landlord feel simpler… especially as regulations continue to evolve.
We stay ahead of changes like Making Tax Digital so we can:
Keep you informed
Help you prepare early
Support you in staying compliant
Even though we don’t submit your tax returns, we make sure you’re in the best possible position to do so smoothly.
If you’re unsure how Making Tax Digital will affect you, or you’d like help getting prepared, we’re always happy to guide you.
Because with the right support, even the biggest changes can feel manageable.