Making Tax Digital for Landlords: What You Need to Know
If you own property directly, you may need to submit quarterly updates, use approved software, and change how you handle your tax affairs.
From April 2026, landlords with annual rental income over £50,000 will face a major shift in how they report income to HMRC. It’s part of the government’s Making Tax Digital (MTD) initiative, a plan to move the UK’s tax system fully online.
If you own property directly, you may need to submit quarterly updates, use approved software, and change how you handle your tax affairs.
But if you invest through Housemartin, you can relax — we explain why below.
What Is Making Tax Digital?
Making Tax Digital is HMRC’s long-term plan to modernise tax reporting in the UK. Instead of submitting one annual self-assessment, affected individuals and businesses will be required to:
- Keep digital records
- Submit quarterly income and expense reports via HMRC-approved software
- Provide a final “End of Period Statement” after the tax year
When Does It Start?
The current timeline is:
| Income Threshold | MTD Start Date |
| £50,000+ rental income | April 2026 |
| £30,000–£50,000 rental income | April 2027 (provisional) |
| Under £30,000 | No date confirmed |
If you meet the threshold, you’ll need to register for MTD for Income Tax Self Assessment (ITSA) and start using digital software.
Who Will Be Affected?
Making Tax Digital for ITSA affects individual landlords (not companies) with gross rental income over the threshold — even if:
- You make little or no profit
- You own just one rental property
- You still file paper returns today
If you receive rental income jointly (e.g., with a spouse), each person’s share is assessed individually.
What Will Landlords Need to Do?
From 2026, instead of filing traditional self-assessment tax returns, affected landlords must:
- Use MTD-compatible software (e.g., Xero, QuickBooks, FreeAgent)
- Maintain digital records of property income and expenses
- Submit four quarterly updates to HMRC
- Submit a final annual declaration with adjustments
Failing to comply may result in penalties and interest charges for late or incorrect submissions.
What About Housemartin Investors?
If you invest in property on the Housemartin Exchange, this change does not apply to income you receive through the platform. This is because:
- Housemartin investors receive interest, not rental income in their own name
- You are not acting as a landlord or managing tenants
- We provide statements and reporting for your tax records
That means you won’t need to register for MTD or file quarterly updates simply because you invest through Housemartin.
However, if you also own buy-to-let properties directly, and your rental income exceeds £50,000, you’ll need to prepare for MTD as part of your personal tax return.
Another Burden for Landlords
For many landlords, Making Tax Digital is the latest in a long list of regulatory and tax changes that have made property ownership more complicated, time-consuming, and costly.
Landlords have to contend with:
- The removal of mortgage interest tax relief
- The abolition of the 10% wear and tear allowance for furnished properties
- A stamp duty surcharge on second homes, now increased to 5%
- Expanding local landlord licensing schemes across the UK
- Changes to EPC rules from June 2025, which may downgrade properties and raise upgrade costs
- The upcoming Decent Homes Standard, set to become mandatory for private landlords
- The anticipated abolition of Section 21, which remains under debate but forms a central part of the Renters (Reform) Bill
With MTD for landlords, many will be required to submit quarterly digital tax updates, maintain compliant software, and shift away from traditional self-assessment.
Unsurprisingly, growing numbers of landlords — particularly those with small portfolios — are rethinking whether the returns are worth the effort.
What Should Landlords Do Now?
If you own property directly and may be affected by MTD:
- Learn more from the HMRC MTD for ITSA guidance
- Start tracking your rental income and expenses digitally
- Review HMRC’s approved software list
- Speak to your accountant about preparing for April 2026
- Watch for updates from HMRC’s official MTD overview page
Let Housemartin Handle the Hassle
Tax reporting, tenant management, rent collection, energy upgrades — it’s a lot. That’s why so many investors are choosing Housemartin as a hands-off alternative to buy-to-let.
With Housemartin, you can:
- Earn inflation-linked income
- Avoid landlord obligations, tax complexity, paperwork and risk
- Help provide homes for those who need them most
Join thousands of investors who prefer hands-off, hassle-free residential property-backed investing.