Making Tax Digital for Landlords

From April 2026 there are changes to the way some landlords report tax to HMRC. This forms part of the government’s Making Tax Digital (MTD) programme.

In addition to the annual self assessment tax return, landlords with property or self employment gross income of over £50,000 per annum, will need to keep digital records of rental income and expenses and submit updates to HMRC every quarter using government approved software. The gross income threshold will reduce in later years.

You can check whether Making Tax Digital applies to you here:
https://www.gov.uk/guidance/check-if-youre-eligible-for-making-tax-digital-for-income-tax#what-to-do-if-you-need-to-use-the-service

Your accountant may complete the quarterly submissions on your behalf, or there is also compatible software available if you prefer to manage the submissions yourself. Further information on software options can be found here:
https://www.gov.uk/guidance/find-software-thats-compatible-with-making-tax-digital-for-income-tax

Cloud Lettings will continue to provide digital rental statements to our landlords, showing rent received and expenses, which can be used as part of your records.

If you have any questions about how Making Tax Digital may apply to you, we recommend contacting your accountant or tax adviser for further information.