Making Tax Digital: What Landlords Need to Know for April 2026

As the current tax season gets into full swing, many landlords are busy finalising their returns. However, the horizon is shifting. Under the government's Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), the way many property owners report their earnings is about to undergo a significant transformation.

The New Requirements

From April 2026, landlords with a qualifying rental income in excess of £50,000 per annum will be required to change how they interact with HMRC. It is vital to note that this threshold applies to gross income, not profit.

If you fall into this bracket, you will no longer be able to use the traditional annual Self-Assessment process. Instead, you must:

• Use HMRC-approved software to maintain digital records.
• Submit quarterly updates of your income and expenses.
• Provide a final declaration at the end of the tax year.

Who is Exempt?

There is no need to panic just yet. You are not currently required to join the first phase of MTD if:

• Income Threshold: Your share of qualifying income for the last reported year was less than £50,000, and you expect it to remain below this level for 2026-2027. Remember, if you own a property jointly, the threshold applies only to your individual share of the rent.
• Limited Companies: Your properties are held within a Limited Company and are therefore subject to Corporation Tax rather than personal Income Tax.
• Digital Exclusion: You can legitimately demonstrate that you are "digitally excluded." This applies to individuals who cannot use digital tools due to age, disability, remote location (lack of internet), or religious beliefs.

How Emsleys Can Help

While the transition to digital reporting may seem daunting, it is designed to provide a more real-time view of your tax liabilities, potentially making budgeting easier in the long run.

Emsleys Lettings are not accountants, and we strongly recommend consulting with a qualified tax professional to discuss your specific financial position. However, we are here to support our landlords in navigating their changing responsibilities. For those whose portfolios we manage, we ensure your rental records are kept in a clear, organised format that can be easily relayed to HMRC or your accountant.

The regulatory landscape is moving fast - ensure you are prepared for the digital switchover before the April deadline.

Professional Support from Emsleys

For expert advice, contact Helen Jolly at helen.jolly@emsleysestateagents.co.uk or call 0113 264 2642.