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MTD for Landlords Starts April 2026 – Are You Ready?
Making Tax Digital for Landlords: What You Need to Know Before April 2026
Fairfax Tax & Accounts – Expert Guidance for Landlords & Property Businesses
Making Tax Digital (MTD) for Income Tax is officially going live from 6 April 2026, and it represents the biggest change to landlord taxation since Self Assessment was introduced. From this date, many landlords will have to keep digital records, use HMRC-approved MTD software, and submit quarterly updates rather than a single annual tax return.
HMRC estimates that 780,000 landlords and sole traders will be affected in the first phase, rising to 1.75 million by 2028. If you receive property income, this change is likely to impact you—and preparation now will save cost, stress and penalties later.
Who Must Comply With MTD?
MTD applies based on gross income, not profit.
You must join MTD if your gross property and/or self-employment income exceeds:
- £50,000 from April 2026
- £30,000 from April 2027
- £20,000 from April 2028
Income includes:
- UK property income
- Overseas property income
- Furnished holiday lets (FHLs)
- Self-employment income
How MTD Works for Landlords
MTD replaces the annual Self Assessment return with:
- Quarterly digital updates
- One End of Period Statement (EOPS)
- A Final Declaration (replacing the SA100) due by 31 January
There is no change to tax payment deadlines:
- 31 January (balancing payment + first payment on account)
- 31 July (second payment on account)
What Records Must Landlords Keep?
Landlords must maintain digital records of:
- Rental income
- Allowable expenses
- Bank transactions
- Receipts, invoices and supporting documents
Why Prepare Early?
MTD requires:
✔ new systems
✔ new processes
✔ new software
Joining the HMRC pilot early allows you to:
- Test your chosen software
- Get used to quarterly submissions
- Avoid penalties during the soft-landing phase
- Reduce last-minute compliance issues.
As James Murray MP put it, MTD is designed to “modernise how people manage their tax.” Landlords who prepare now will benefit the most.
Best MTD Software Options for Landlords (2025–2026)
To comply with MTD, landlords must use HMRC-approved software. Here are five leading options—each suitable for different portfolio sizes and experience levels.
1. Hammock (Landlord-Specific Software)
Best for: Portfolio landlords, landlords wanting automation, bank-feed reconciliation
Strengths:
- Designed specifically for property income
- Real-time rent tracking and expense automation
- Bank-feed integration with landlord-friendly categorisation
- Rental profit dashboards and tax-ready reporting
MTD fit:
Hammock is already developing a full MTD for ITSA solution and is popular with landlords wanting minimal admin.
2. Xero
Best for: Landlords with incorporated SPVs, mixed property + business income
Strengths:
- Robust bookkeeping features
- Excellent bank reconciliation
- Integrates with property apps and portfolio tools
MTD fit:
Xero will support quarterly updates and works well if your rental activity forms part of a wider business structure.
3. FreeAgent
Best for: Landlords using NatWest, RBS or Mettle—the software is free.
Strengths:
- Simple interface ideal for first-time MTD users
- Automated expense capture
- Clean dashboards and landlord categories
MTD fit:
A solid, cost-effective choice for smaller landlords with straightforward accounts.
4. Landlord Studio
Best for: Landlords needing property management + tax tools in one app.
Strengths:
- Property management features (tenancies, reminders, document storage)
- Digital income/expense tracking
- Mobile-first interface.
MTD fit:
A promising solution because it merges property management with tax compliance—ideal for landlords seeking both.
5. QuickBooks Online
Best for: Landlords familiar with traditional bookkeeping
Strengths:
- Longstanding HMRC-recognised platform
- Strong categorisation and reporting
- Receipt capture and automation
MTD fit:
Good for landlords who already have QuickBooks or want a general accounting package with strong HMRC integration.
How to Choose the Right MTD Software
When comparing MTD platforms, consider:
- Will it connect to your bank accounts?
- Does it support property-specific income and expenses?
- Does it provide reports your accountant can easily review?
- Does it work for multiple properties, joint ownership, or overseas property?
- Is there mobile access?
- Do you want property management features too?
Fairfax Tax & Accounts can help you select the most suitable solution for your portfolio.
Checklist: What Landlords Should Do Now
✔ Confirm whether your gross income exceeds the threshold
✔ Speak to your accountant about your MTD obligations
✔ Choose your MTD software early
✔ Start keeping digital records now.
✔ Stay updated with HMRC announcements.
Final Thoughts
MTD for Income Tax is more than a compliance change—it is a shift in how landlords manage their finances. With quarterly reporting, real-time visibility and digital record-keeping, many landlords may eventually find their tax position easier, clearer and more accurate.
Fairfax Tax & Accounts can help you assess your MTD readiness, choose the right software, and ensure a smooth transition before April 2026.