If you’re a landlord earning income from property, big changes are on the horizon. From April 2026, Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) will apply to many landlords across the UK, and being unprepared could lead to compliance issues or avoidable penalties. At TreyBridge Accountants, we’re here to help you get ahead of the curve with clear, personal guidance tailored to your property portfolio.
Who is affected by MTD for landlords?
The first phase of MTD ITSA applies to landlords with a total income of over £50,000 from property, self-employment, or a combination of both. If your property income alone crosses this threshold, or you have other earnings that take you above it, you’ll need to follow the new MTD rules from April 2026. If your income falls between £30,000 and £50,000, the rules will apply from April 2027. HMRC has not yet confirmed when (or even if) those earning below £30,000 will be required to join MTD.
Organise your records
Good record-keeping is the foundation of a healthy accounting system. Make sure that all of your income and expenditure records are complete, up-to-date and easily accessible. If you’ve been relying on spreadsheets or paper-based systems, now is the ideal time to consider cloud accounting software. Platforms like Xero, QuickBooks and Sage help to keep things organised and give you real-time insights into your cash flow and profitability. It also means that you'll be on the right track as Making Tax Digital is rolled out to other areas of tax.
What changes under MTD?
Rather than submitting a single self-assessment tax return once a year, you’ll need to:
Keep digital records of all rental income and expenses.
Submit quarterly updates to HMRC via approved software.
Provide an end-of-period statement (EOPS) and final declaration each year.
This will require a shift in how you manage your finances, especially if you currently rely on spreadsheets, handwritten records or only update your books once a year.
What software do landlords need for MTD?
To comply with MTD, you’ll need HMRC-recognised software that allows for digital recordkeeping and seamless submission of updates, such as:
Xero: Great for scalability and integrations.
QuickBooks: User-friendly and well-suited to property owners.
FreeAgent : Particularly good for smaller landlords or those with simpler needs.
We can help you choose the right software based on the size and complexity of your property portfolio and get everything set up properly.
Common MTD pitfalls for landlords to avoid
As with any new system, it’s easy to fall into bad habits or make mistakes. Below are a few to watch out for.
Missing deadlines: Quarterly updates are not optional and missing them can result in penalty points.
Using non-compliant software: Make sure your chosen platform is fully MTD-compatible and HMRC-recognised.
Incomplete records: Every transaction matters, including rent received, repairs, management fees and mileage.
Waiting too long to prepare: Starting early gives you time to adapt, learn the system and avoid unnecessary stress.
How TreyBridge Accountants can help you prepare for MTD
We know that every landlord is different, which is why we tailor our advice to fit your individual circumstances. Whether you manage a single buy-to-let home or a portfolio of properties, we can help you in a variety of ways.
Choose and set up the right digital tools.
Keep accurate records throughout the year.
Submit your quarterly updates on time.
Avoid errors, penalties and lost tax-saving opportunities.
The 2026 deadline may seem a way off, but getting ready now will give you a smoother transition and peace of mind. Get in touch with TreyBridge Accountants today on 01482 235575 or fill in our contact form and we’ll guide you through every step.
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