Making Tax Digital for Landlords: What You Need to Know
James Murphy posted on 17th February 2026
The way landlords report income to HMRC is changing. Making Tax Digital (MTD) is set to transform Income Tax reporting, and from April 2026, landlords with higher rental incomes will need to adapt to a fully digital process.
Understanding MTD now will give landlords the time to review record-keeping practices, select appropriate software, and ensure a smooth transition. Here’s everything you need to know.
What is Making Tax Digital?
Making Tax Digital for Income Tax introduces a modern, digital approach to reporting rental and self-employment income.
Instead of filing a single Self Assessment return at the end of the tax year, landlords will need to:
Keep digital records of rental income and allowable expenses
Submit updates to HMRC throughout the year via compatible software
Complete a final declaration after the tax year ends
The system is designed to reduce errors, simplify record-keeping, and improve efficiency for both landlords and HMRC.
Who Will Need to Comply?
MTD applies to landlords who meet all of the following criteria:
You are registered for Self Assessment as an individual
You receive income from property letting (or self-employment)
Your total income exceeds the relevant threshold
Income thresholds for MTD:
From 6 April 2026: total property/self-employment income over £50,000
From April 2027: over £30,000
From April 2028: over £20,000 (pending legislation)
Landlords operating through a limited company are not affected, as they pay Corporation Tax under separate rules.
How Reporting Will Change
The key difference under MTD is how and when income is reported, not the amount of tax paid.
Digital Record Keeping
Landlords must keep digital records of:
Rent received
Allowable expenses, including repairs, maintenance, and agent fees
Other property-related income and costs
Records must be stored in approved software and kept up to date throughout the year.
Regular Updates to HMRC
Instead of a single annual Self Assessment return, landlords will submit interim updates during the tax year. These updates record income and expenses to date but are not final tax bills.
At the end of the year, landlords will submit a final declaration, confirming all figures. Payment deadlines remain unchanged, with tax due by 31 January following the tax year.
Choosing the Right Software
HMRC does not provide software, so landlords will need to select an MTD-compatible system. The right software should allow you to:
Maintain digital records
Submit interim updates
Complete the final declaration
Landlords may manage submissions directly or work with an accountant or tax adviser for guidance and compliance.
At Martin & Co, we’re Making Tax Digital simple for landlords. As always, we want to make it easy for you to meet new legislative requirements. That’s why we have partnered with an award-winning leader in property tax, who have developed a fast and effective way to complete your MTD returns. This partnership provides the most compliant and comprehensive service on the market, giving you peace of mind and minimising administrative burden. Contact our team today to find out how we can support you with Making Tax Digital and ensure your rental income is reported accurately.
Preparing for MTD: Practical Steps
Even if the first phase doesn’t apply to you, early preparation can make the transition smoother:
Check your income – Confirm whether your rental and self-employment income exceeds the £50,000 threshold.
Review record-keeping – Consider whether spreadsheets or paper records can be replaced by digital tools or bridging software.
Maintain clear rental statements – Ensure rent and expense records are accurate and up to date.
Consult a professional – An accountant or letting agent can provide advice on software and reporting requirements.
Challenges and Opportunities for Landlords
Challenges:
Learning to use new software and adapting existing record-keeping
Maintaining accurate digital records throughout the year
Increased administrative responsibility for personally-owned landlords
Opportunities:
Streamlined reporting reduces the risk of errors and penalties
Early adoption can make compliance effortless and stress-free
Landlords with managed properties can leverage professional support to handle reporting
How Martin & Co Can Help
For landlords in Poole, Bournemouth, and surrounding areas, Martin & Co provides professional property management and clear rental statements, helping you stay organised and fully compliant as MTD is introduced.
As part of our commitment to making Making Tax Digital straightforward, we have partnered with an award-winning leader in property tax. This partnership offers a fast, reliable, and fully compliant service to complete your MTD returns with minimal administrative burden.
Our team can:
Guide you through digital record-keeping
Support software setup and submissions
Ensure your property income is reported accurately
Provide one-on-one assistance with MTD to make the process seamless
Get in touch with your local Martin & Co branch in Poole or Bournemouth today to prepare for Making Tax Digital and make sure your rental portfolio is ready.
FAQs: Making Tax Digital for Landlords in Poole & Bournemouth
1. What is Making Tax Digital (MTD) for landlords? MTD is a government initiative that modernises how landlords report rental income and expenses to HMRC. From April 2026, landlords above certain income thresholds must keep digital records and submit updates throughout the year instead of filing a single annual Self Assessment return.
2. Who needs to comply with MTD in 2026? If you are an individual registered for Self Assessment, receive rental income, and your total income from property and/or self-employment exceeds £50,000, you must comply. Landlords operating through a limited company are exempt, as companies pay Corporation Tax.
3. How will MTD change the way I report rental income? Instead of reporting income once a year, you will:
Keep digital records of rent received and allowable expenses
Submit interim updates to HMRC throughout the year
Complete a final declaration after the tax year ends
4. What records do I need to keep for MTD? You need to keep digital records of:
Rent received from tenants
Allowable expenses such as repairs, maintenance, and letting agent fees
Other property-related income or costs
5. Do I need special software for MTD? Yes. HMRC requires landlords to use MTD-compatible software to maintain records, submit updates, and complete the final declaration. This can be managed yourself, through an accountant, or via a dedicated property tax partner.
6. How can Martin & Co help landlords in Poole & Bournemouth? For landlords in Poole, Bournemouth, and nearby areas, Martin & Co offers professional property management and clear rental statements. We’ve partnered with an award-winning property tax provider to deliver a fast, compliant, and comprehensive solution for completing MTD returns with minimal effort.
7. What if I manage multiple properties in Poole & Bournemouth? Landlords with multiple properties can use the same MTD system for all holdings. Martin & Co can help consolidate records across properties, ensuring your updates to HMRC are accurate and complete.
8. When do I need to start preparing for MTD? Even if your first mandatory phase is April 2026, start reviewing income and expenses now, consider digital record-keeping, and consult a professional to avoid last-minute stress.
9. Will using MTD affect how much tax I pay? No. MTD changes how and when you report income, not the amount of tax due. Tax is still calculated in the same way and remains payable by 31 January following the end of the tax year.
10. Where can I get support locally for MTD in Poole & Bournemouth? Martin & Co’s local branches in Poole and Bournemouth provide one-on-one support, helping landlords set up digital records, navigate MTD software, and ensure all submissions to HMRC are accurate and timely.
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James has lived in the Poole & Bournemouth area for over 25 years and has an extensive knowledge of the conurbation. He started his career in the property industry in 2015 following his graduation from the University of Kent, Canterbury and has worked in a variety of different roles in this time. Formerly a Sales Manager, he brings an in-depth understanding of the industry to his current role as Marketing Manager at Martin & Co.
