From April 6th, 2026, the way landlords report income to HMRC is changing forever.
If you earn more than £50,000 a year in gross income – including both rental income and your salary – you’ll need to follow Making Tax Digital (MTD) rules. For landlords across Manchester, this means quarterly digital submissions, new software requirements, and potential penalties for late or incorrect reporting.
And here’s the twist: many landlords don’t realise the threshold includes combined income, not just rental earnings.
This guide explains what MTD means for landlords in 2026, who it applies to, and how Hunters Manchester Lettings can take the admin off your plate.
What is Making Tax Digital for landlords 2026?
Making Tax Digital is HMRC’s long-term plan to modernise the UK tax system.
From April 2026, any individual earning over £50,000 in gross income must:
- Maintain digital records of rental income and expenses
- Use approved accounting software
- Submit quarterly tax updates via the MTD system
- Submit an end-of-year final declaration
This applies to sole traders, landlords, and partnerships with income over the threshold.
If your income is between £30,000 and £50,000, you’ll be brought into MTD in April 2027.
Does the £50,000 threshold include my salary?
Yes. This is where many landlords get caught out.
The £50,000 threshold includes gross income from all sources, not just your rental properties.
Examples:
- A teacher earning £42,000 salary + £11,000 rental income = £53,000 total ✅ MTD applies
- A self-employed consultant earning £39,000 + £15,000 in rent = £54,000 total ✅ MTD applies
This is not a profit threshold. It doesn’t matter how much your expenses are. It’s all about total income before deductions.
How does quarterly reporting work for landlords?
Once you’re in the MTD scheme, you must send updates to HMRC every 3 months.
Each quarterly update includes:
- Rental income received
- Allowable expenses (repairs, insurance, management fees, etc.)
- Digital records of all transactions
You’ll still pay your tax bill once a year, but HMRC will use your quarterly data to build a near real-time picture of what you owe.
At the end of the year, you’ll submit a final declaration (like a digital version of the current Self Assessment).
What software do I need for MTD compliance?
You’ll need HMRC-approved MTD-compatible software to:
- Keep your records digitally
- Link your bank accounts or upload data manually
- Send updates directly to HMRC every quarter
Popular choices include:
- Xero
- QuickBooks
- Sage Business Cloud
- FreeAgent
Spreadsheets alone won’t cut it. You must use software that connects to HMRC’s systems.
Common mistakes landlords are making in Manchester
At Hunters Manchester, we’re already helping landlords prepare for the April 2026 switch. Here are the biggest misunderstandings we’re seeing:
- Thinking it only applies to large landlords
Even one property can trigger MTD if your total income crosses £50,000. - Confusing profit with gross income
This is a gross threshold. Expenses don’t reduce your eligibility. - Not using compliant software
You can’t submit by email, post, or spreadsheet. HMRC requires proper integration. - Leaving it too late
Landlords who wait until April risk fines, stress, or errors in their reporting.
How much is the fine for missing MTD deadlines?
From April 2026, HMRC is introducing a points-based penalty system:
- Miss one deadline: 1 point
- Hit the point threshold (4 for quarterly reporting) = £200 fine
Points reset after a period of compliance, but consistent late filing will trigger penalties quickly. There are also separate fines for inaccurate submissions.
Property tax intax Manchester 2026: what else is changing?
Alongside MTD, landlords should be aware of:
- Tighter rules on allowable expenses – HMRC is getting stricter on what can be claimed
- Greater data-sharing with letting agents – expect more cross-referencing
- More digital inspections – HMRC can audit records remotely
In short: accurate, consistent record-keeping isn’t just best practice – it’s a legal obligation.
How Hunters Manchester landlord services help you stay compliant
Managing quarterly tax updates isn’t what most landlords signed up for. That’s why our fully managed landlords get peace of mind included.
We provide:
- Digital record keeping – MTD-ready data for all managed properties
- Expense tracking – correctly categorised for easy reporting
- Document storage – EPC, EICR, tenancy agreements all securely stored
- Quarterly statements – easy-to-read summaries for your accountant or software
With our support, your tax records are ready to go. And your letting admin? Cut down dramatically.
Still self-managing? Here’s what to do now
If you’re managing your Manchester property yourself, take these five steps before April:
- Check your income threshold
Add up all your gross income. If it’s over £50,000, you’re in scope. - Choose MTD-compatible software
Set up your accounting tools now to avoid a last-minute panic. - Go digital with receipts and rent logs
Ditch the paper. Scan everything. Categorise monthly. - Get professional help if needed
Your letting agent or accountant can assist – give them time to prepare. - Consider a managed lettings service
If the admin is taking over your evenings, let us take it off your hands.
When will landlords under £50,000 need to comply?
If your total income is between £30,000 and £50,000, you’ll need to follow MTD rules from April 2027.
However, HMRC strongly encourages all landlords to prepare early.
Even if you’re under the threshold, going digital now can:
- Help track profit and performance
- Catch tax deductions you may be missing
- Make it easier to grow your portfolio
Will MTD affect how I pay tax?
Not yet. You’ll still pay your tax bill annually.
But HMRC has hinted that in future, quarterly updates could lead to in-year payment models.
So while payments remain annual for now, the direction is clear: real-time tax visibility, fewer surprises, and more accuracy.
MTD isn’t just a tax thing. It’s a time thing.
If you’re a Manchester landlord juggling tenants, maintenance, rent collection and compliance, adding tax reporting to the list might be the final straw.
That’s why so many landlords are turning to Hunters Manchester for fully managed services.
We offer:
- 24/7 property management
- Legal compliance and documentation
- Maintenance and contractor coordination
- Financial reporting tailored for MTD
Letting is a business. We treat it that way – so you don’t have to.
Final thoughts: get ahead of the April 6th deadline
Making Tax Digital for landlords in 2026 isn’t just a tech upgrade. It’s a legal requirement with real consequences.
And it’s coming fast.
If your income is over £50,000, you need to be ready to:
- Report quarterly
- Use approved software
- Maintain accurate digital records
At Hunters Manchester, we help landlords stay compliant, stress-free, and focused on returns – not reporting.
Book your free valuation today
Because property is personal. And so is getting your tax right.
