Making Tax Digital - Are Landlords Ready?

We recently attended the HMRC webinar for Making Tax Digital (MTD) and the information for this Blog is correct at the time of that delivery (recorded on 12th June 2025).

HMRC Webinar Training to Understand MTD

The seminar was just under an hour in length and covered the planning, preparations needed, taking action and using MTD.  It would be impossible to cover the extent of the content within a Blog and so we are pleased to share the full detailed training in the link below for you to view at your convenience.

View Recording

To register to watch the live webinars allowing interaction if preferred, there are two further scheduled dates as follows:

27th June - 9.45am-10.45am

2nd July - 9.45am-10.45am

By way of a brief summary, MTD is being phased in from April 2026 and some landlords and sole traders will have to use this. Therefore landlords or agents will have to use MTD software to create, store and correct digital records, send quarterly updates to HMRC and submit their tax returns by 31st January the following year.  At the end of the tax year you will need to finalise your income tax position using the software.

Understanding the rules!

MTD will be a legal requirement if:

• You are an individual registered for self-assessment

• You get income from self-employment or property, or both and your qualifying income is more than the threshold

• You have made one or more self-assessment tax returns

From April 2026, self-employed individuals or landlords with income from self-employment and property totals over £50,000 for the 2024/2025 tax year will have to keep digital records and send quarterly updates to HMRC using compatible software.  From April 2027 it will affect the same for self-employment income and property that totals over £30,000 for the 2025/2026 tax year, and from April 2028 it will affect totals which are over £20,000 for the 2026/2027 tax year.

The webinar helps you define and understand qualifying incoming.  It also expands on the rules and main exemptions. There will be an interactive tool which helps you understand if you are digitally excluded.  HMRC are writing to all their customers who will be legally required to use MTD based on their 2023/2024 tax returns.   

HMRC advise action should be taken now to consider your current and projected gross income from self-employment, UK property and foreign property to anticipate if you will be mandated to use the service. They confirm you should make your software choices based on the whole MTD journey of keeping digital records, sending quarterly updates and completing end of year along with other factors such as which accounting method you will use and whether you intend to carry out in year adjustments.

The webinar delivers a comprehensive understanding of MTD and will help you make early preparations for the changes ahead at this moment in time.