Making Tax Digital (MTD) is one of the biggest changes to rental income reporting in years, and for many landlords, April 2026 will be the point where the new rules begin to apply.
While the tax you pay is not changing, the way income and expenses are recorded and reported to HM Revenue & Customs (HMRC) is becoming far more structured and digital.
For proactive landlords, this is an opportunity to get organised early, avoid last-minute disruption, and stay confidently on top of future compliance. Hunters is encouraging landlords to understand the shift now, because the system is being introduced gradually and will affect more people over time.
What Making Tax Digital means for landlords
Making Tax Digital for Income Tax is HMRC’s move towards a modern, digital reporting system.
Instead of relying entirely on one annual Self Assessment submission, landlords within scope will be expected to keep their rental records digitally and provide updates during the tax year through compatible software.
This does not change how tax is calculated, but it does change the reporting routine. Rental income and allowable expenses will need to be captured consistently throughout the year, rather than pulled together only at the year’s end.
Key dates and income thresholds from April 2026
The first stage of Making Tax Digital for Income Tax begins on 6 April 2026.
From this date, landlords must comply if their qualifying income from property and/or self-employment is more than £50,000 per year.
HMRC has confirmed that the threshold will be reduced in later years, meaning many more landlords will be brought into the system over time. From April 2027, the rules will apply to those earning over £30,000, and from April 2028, the threshold is expected to reduce further to £20,000, subject to legislation.
Even landlords who are not affected immediately should recognise that this is a long-term shift in the direction of travel.
Which landlords will fall within scope?
Making Tax Digital for Income Tax applies to individuals who are registered for Self Assessment and receive rental income, self-employment income, or a combination of both.
The key figure is qualifying income, which is based on gross income before expenses are deducted. For many individual landlords, these thresholds will determine when the new system becomes mandatory.
How rental income reporting will change
The most noticeable change is that rental income reporting becomes more continuous.
Landlords will need to maintain digital records of rent received and allowable costs such as repairs, maintenance, and letting agent fees.
Landlords within scope will also provide HMRC with quarterly summary updates through MTD-compatible software. These updates are not tax bills, but they do create a more regular reporting cycle across the year.
At the end of the tax year, landlords will still complete an end-of-year submission to confirm their overall figures, and the usual Self Assessment payment deadlines will continue to apply.
Digital software and record-keeping requirements
HMRC will not provide its own software platform for Making Tax Digital.
Landlords will need to use commercial software that meets MTD requirements. Some landlords may feel comfortable managing this directly, while others may prefer an accountant or adviser to oversee the reporting process.
Either way, the smartest approach is to plan. Moving towards digital record keeping now, rather than waiting until the final months before April 2026, will make the transition far easier.
Building a smoother reporting routine before April 2026
Making Tax Digital is part of a wider move towards more structured landlord compliance, and the landlords who adapt early will stay in control as reporting expectations evolve.
Hunters supports landlords with professional property management, clear rental documentation, and local expertise to help you stay organised and prepared for the changes ahead.
If you would like guidance on what Making Tax Digital could mean for your rental income, speak to your local Hunters branch today.
