How to Stay Compliant with Making Tax Digital (MTD)
Making Tax Digital (MTD) is transforming how landlords are required to report their property income. If you are a buy-to-let landlord, it’s essential to understand what MTD means for you and how to stay compliant—especially as the phased rollout begins in April 2026.
What Is Making Tax Digital?
MTD is HMRC’s initiative to digitise the UK personal tax system. It aims to reduce errors, improve efficiency, and make tax reporting a quarterly process, instead of an annual one. For landlords, this means a shift from annual paper-based tax returns to quarterly digital submissions using HMRC-approved software.
Who Needs to sign up for MTD
If you earn more than £50,000 annually from property or self-employment, you’ll be required to follow MTD rules from 6 April 2026. Those earning between £30,000 and £50,000 will be mandated from 6 April 2027.
Landlords below the £30,000 threshold are not yet required to comply, but it is recommended to begin using a HMRC compliant software in advance of being required to register, so that you can get familiar with the new software.
One important thing to note though, is that it is the current 2024/25 tax year that will determine if you need to be signing up for MTD in April 2026. Then it will be checked annually with each self-assessment tax return that is completed.
If you have any questions about Making Tax Digital, its impacts on you or with planning ahead for the future, Please feel free to get in contact with our BTL team at PJCO if you have any questions — we’re here to help. You can book a free discovery call by clicking the link below!
Please get in touch on 01273 441187 or book a discovery call with one of our expert accountants.
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