Making Tax Digital (MTD) will change how qualifying landlords report their rental income to HMRC. From 6 April 2026, unincorporated landlords with gross rental or self‑employment income of £50,000 or more will be required to keep digital records and submit quarterly income and expense updates using HMRC‑approved software, followed by a final annual declaration. The scheme will expand to those earning £30,000 from April 2027 and £20,000 from April 2028. Once within MTD, quarterly updates must be submitted by 7 August, 7 November, 7 February and 7 May, with a final declaration due by 31 January following the end of the tax year. Missed submissions can result in penalty points and financial penalties, particularly where deadlines are repeatedly missed.
However, MTD does not apply to everyone and certain automatic exclusions include trustees, personal representatives of deceased estates, non‑resident companies, Lloyd’s members (in relation to underwriting activities), and individuals without a National Insurance number for the relevant tax year. In addition, landlords may apply for an exemption where digital compliance is not practical due to age, disability, location, or religious grounds, with HMRC considering applications on a case‑by‑case basis. Landlords previously exempt from Making Tax Digital for VAT may also have that exemption carried across, subject to HMRC review.