The UK tax landscape is continually evolving, and for landlords, one of the most significant upcoming changes is the expansion of Making Tax Digital (MTD) for Income Tax Self Assessment (ITSA). This initiative aims to modernise the tax system, making it more efficient and reducing errors. As your trusted local specialists, Greater London Properties wants to ensure you are well-informed and prepared for the April 2026 deadline.

What is Making Tax Digital for Income Tax Self Assessment?

MTD for ITSA requires self-employed individuals and landlords with a gross income from their property business and/or other self-employment income exceeding £50,000 to keep digital records and use MTD-compatible software to submit quarterly updates of their income and expenses to HMRC. From April 2027, this will extend to those with income over £30,000. This replaces the traditional annual self-assessment tax return for these individuals.

Key Deadlines and Requirements for Landlords

The primary deadline for landlords to be aware of is April 2026. From this date, if your gross income from property and/or self-employment is above £50,000, you will need to:

• Keep Digital Records: You must maintain digital records of all your property income and expenses. This means moving away from paper-based systems or spreadsheets that are not MTD-compatible.
• Use MTD-Compatible Software: You will need to use HMRC-recognised software to record and submit your financial data. This software will connect directly with HMRC's systems.
• Submit Quarterly Updates: Instead of one annual submission, you will be required to send summary updates of your income and expenditure to HMRC every three months.
• Submit an End of Period Statement (EOPS): After your final quarterly update, you will need to submit an EOPS to finalise your property income and expenses for the tax year.
• Submit a Final Declaration: This will bring together all your income sources, including property income, for the tax year.

It's important to note that while you'll be submitting data more frequently, you won't be paying tax quarterly. Your tax liability will still be calculated and paid annually, typically by 31st January following the tax year, with payments on account due in January and July.

Prepare Now!

At Greater London Properties, we understand that navigating new tax regulations can be daunting, but with proactive planning, you can ensure a smooth transition.

1. Understand Your Income Threshold

Firstly, assess whether your gross property income (and any other self-employment income) will exceed the £50,000 threshold for April 2026. If it does, now is the time to start preparing.

2. Digital Record Keeping

Begin transitioning your record-keeping to a digital format. While MTD-compatible software is essential for submissions, getting your data organised digitally now will save you time later. Consider cloud-based accounting software that can integrate with MTD.

For landlords on our fully managed service, you'll be pleased to know that you already receive comprehensive digital monthly and annual rent statements, which can significantly aid your MTD preparations. This is just one way our property management service simplifies your landlord journey.

3. Choose MTD-Compatible Software

Research and select MTD-compatible software that suits your needs. Many accounting software providers offer solutions specifically designed for landlords. HMRC provides a list of recognised software on their website.

4. Seek Professional Advice

We strongly recommend consulting with an accountant who specialises in property tax and MTD. They can provide tailored advice, help you choose the right software, and ensure you meet all your obligations. We can offer trusted recommendations for solicitors and mortgage brokers, and often have connections with excellent accountants too.

5. Stay Informed

HMRC continues to release guidance on MTD. Keep an eye on official updates, and we will endeavour to keep our landlords informed of any significant developments. Our commitment to clear communication means we're always here to provide honest feedback and tailored, actionable advice.

Why This Matters for Landlords

MTD aims to make tax administration more efficient and reduce errors. While it requires an initial adjustment, it can lead to better financial oversight of your property portfolio. By keeping more regular, digital records, you'll have a clearer, real-time picture of your income and expenses, which can aid in decision-making and financial planning.

As your local specialists, Greater London Properties is dedicated to helping you navigate the complexities of property ownership in London. Our Director-Led Service ensures you receive expert guidance, and our in-house referencing team and comprehensive property management services are designed to make your life as a landlord easier. We are committed to providing outstanding customer service and results with honesty, accuracy, and enthusiasm, staying two steps ahead to support you.

Don't leave your MTD preparations until the last minute. Start planning now to ensure a seamless transition for April 2026. If you're not yet benefiting from our fully managed service and the digital statements it provides, we encourage you to reach out to Greater London Properties today to discover how we can simplify your property management and MTD compliance. Your Home, Your Story, and your financial well-being are important to us.