If you own rental property in Skipton, across the Craven district, or in the villages and dales stretching into the Yorkshire Dales National Park, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is now a real and pressing deadline – not a distant policy conversation. This October, review current comparable evidence and your property’s condition, including heating and maintenance needs before winter.
In October 2026, landlords already within Making Tax Digital need digital records and compatible software for quarterly updates, followed by an annual tax return. Those entering in April 2027 should prepare now with their accountant.
This guide cuts through the noise and tells you exactly what you need to know and do right now.
What is Making Tax Digital for Income Tax?
Making Tax Digital for Income Tax requires eligible sole traders and landlords to keep digital records, send quarterly summaries through compatible software and submit an annual tax return. Quarterly updates do not replace the annual return.
It doesn’t change how much tax you pay. It changes how and when you report it.
Think of it as moving from one annual report card to four shorter check-ins a year, with a final end-of-year declaration to confirm everything is accurate.
The two deadlines every Skipton and Craven landlord needs to know
HMRC is rolling out MTD for ITSA in phases, based on income thresholds.
April 2026 – the £50,000 threshold
If your combined gross self-employment and property income exceeded £50,000 in the 2024–25 tax year, you should have started in April 2026 unless exempt. It is qualifying income before expenses, rather than rental profit or property income alone, that determines scope.
April 2027 – the £30,000 threshold
If your qualifying income exceeded £30,000 in 2025–26, you must start in April 2027 unless exempt. Check the relevant year’s combined self-employment and property income with your accountant.
The next confirmed phase starts in April 2028 for qualifying income over £20,000 in 2026–27, unless exempt. Income at or below a threshold is not the same as income over it.
What quarterly updates actually involve
Quarterly updates are cumulative summaries for each business. Standard periods end in July, October, January and April; calendar periods are also available. This October, prepare the second update, due in November, using the deadline shown in your software and HMRC’s current guidance.
At the end of the tax year, you’ll submit a final declaration – similar to the current Self Assessment return – to confirm your total income and claim any reliefs or adjustments.
The key shift is that you can no longer leave everything until January. Records need to be kept digitally and updated regularly throughout the year.
Which software do you need?
HMRC does not provide its own MTD software. Check its current compatible-software finder for a product supporting property income, quarterly updates and the annual tax return; not every accounting product or subscription supports all these functions.
- QuickBooks (with landlord-specific features)
- Xero
- FreeAgent
- Hammock (built specifically for landlords)
- Landlord Vision
For a small Skipton or Craven portfolio, compare the supported property-income functions, reporting, price and accountant access before choosing software. A product’s brand name alone does not establish its suitability.
For a larger or mixed portfolio, ask your accountant which product supports your income sources and reporting obligations. Do not assume a general accounting package covers every landlord requirement.
Your accountant may already have a preferred platform. Check with them before committing to anything.
What records you need to keep digitally
Under MTD for ITSA, the following must be recorded digitally and retained:
- Rental income received (per property)
- Expenses and finance costs, including repairs, letting fees, insurance and mortgage interest, with the correct tax treatment. Individual residential landlords generally receive a basic-rate finance-cost tax reduction rather than deducting all mortgage interest from rental profit.
- Any other income from the property, such as parking or storage charges
Paper receipts are still acceptable as source documents, but the records themselves must sit within your digital system. A spreadsheet linked to HMRC-approved bridging software can also qualify, though a dedicated landlord app is generally simpler.
Why this matters more in the Yorkshire Dales than you might think
Skipton sits at the gateway to the Yorkshire Dales National Park, and the rental market across this wider area is more varied – and more complex – than in a typical urban lettings market.
Many landlords here don’t just hold a single buy-to-let in town. Across Craven, you’ll find landlords managing:
- Traditional stone terraces in Skipton’s Middletown area, with rents and yields assessed property by property
- Family semis in Greatwood and Embsay, popular with long-term tenants who value the school catchments and community feel
- Rural cottages and farmhouses in the Dales villages – Grassington, Gargrave, Long Preston, Hellifield – some of which operate as furnished holiday lets
- Mixed portfolios that span both residential and short-term lets, which can create additional complexity under MTD rules
Craven portfolios can span town homes, village cottages and short-term accommodation, each with different records to maintain. Residential sales totals do not establish rental demand or reduce the digital record-keeping requirements.
The furnished holiday lettings tax regime was abolished for Income Tax from April 2025. Ask your accountant how former holiday-let income should now be included in your property business and MTD reporting.
What happens if you don’t comply
HMRC will not apply late-quarterly-update penalty points in the 2026–27 tax year, although the updates still need to be sent before the annual tax return. After that first year, the quarterly points threshold is four, leading to a £200 penalty. Late annual returns and late payment have separate rules.
Late or inaccurate final declarations can also attract percentage-based penalties on unpaid tax.
The message is straightforward: the system is designed to catch landlords who ignore it, not just those who make genuine errors.
Your October 2026 action plan
Whether your deadline has already passed or is still ahead, here’s what to do now.
If you’re above the £50,000 threshold
You should already be compliant. If you’re not, contact your accountant today and register for MTD for ITSA through your HMRC online account. Choose compatible software and begin submitting as soon as possible. Don’t wait.
If you’re between £30,000 and £50,000
April 2027 is closer than it feels. Use the next few months to choose your software, set up your digital records, and speak to your accountant about how quarterly submissions will work in practice. Starting early means fewer surprises.
If you’re below £30,000 or unsure of your threshold
Check your combined gross self-employment and property income for the relevant tax year. The April 2028 phase applies above £20,000, so landlords below £30,000 should still check their start date and any exemption.
How Hunters Skipton can help
Hunters Skipton works with landlords across Skipton, Craven, and the wider Yorkshire Dales – from single-property landlords renting out a Middletown terrace to portfolio investors managing multiple lets across the Dales villages.
MTD for ITSA is primarily a tax compliance matter, so you’ll need a qualified accountant to handle the technical side. But knowing exactly what your property earns – your gross rental income, your void periods, your current yield – is the foundation of everything.
If you’re not sure what your rental property is worth in today’s market, or want to understand how your income compares to current Skipton and Craven benchmarks, book a free rental valuation with the Hunters Skipton lettings team. It’s a straightforward conversation with no obligation, and it gives you the numbers you need to plan ahead.
You can also speak directly to the Hunters Skipton branch about managing your let more efficiently – from tenant sourcing and rent collection to compliance support and portfolio reviews.
Here to get you there.
Book your free rental valuation with Hunters Skipton today, or get in touch with the team to talk through how we can support your lettings portfolio across Skipton, Craven, and the Yorkshire Dales.
