As January comes to a close, another major deadline is moving firmly into focus for landlords across the UK. From 6 April 2026, the way rental income is reported to HMRC will change permanently under Making Tax Digital (MTD), marking one of the most significant shifts in landlord taxation in decades.

For many landlords, this is not simply an administrative tweak. It represents a fundamental change in how records are kept, how often income is reported, and how compliance is monitored. With just over two months remaining, now is the critical transition window.

What is Making Tax Digital and why it matters now

Making Tax Digital is designed to modernise the UK tax system by moving landlords away from annual self-assessment returns and towards digital record-keeping with quarterly reporting. From April 2026, landlords earning above the qualifying income threshold from property will be required to submit updates to HMRC throughout the year using approved digital software.

As with previous regulatory changes, those who prepare early will experience a smoother transition. Those who leave it too late risk errors, penalties and unnecessary stress at the start of the new tax year.

Who will be affected from April 2026

The April 2026 phase of MTD will apply to landlords whose annual gross property income exceeds the threshold set by HMRC. This includes income from single rental properties as well as portfolios and applies regardless of whether you own property personally or jointly.

Crucially, this is not optional. Once within scope, landlords must:

•       Keep digital records of income and allowable expenses
  
  
•       Submit quarterly updates to HMRC
  
  
•       Complete an end-of-period statement to finalise tax

This marks a clear move away from retrospective reporting towards real-time tax oversight.

Quarterly reporting: the biggest mindset shift

For many landlords, the most challenging aspect of Making Tax Digital is the move to quarterly submissions. Instead of gathering paperwork once a year, landlords will need to maintain accurate, up-to-date records throughout the tax year.

This requires consistency, organisation and reliable systems. Missing information, delayed updates or incorrect categorisation of expenses could trigger HMRC queries far more quickly than under the current system.

For portfolio landlords, the administrative burden increases further, particularly where properties are self-managed or spread across different locations.

Why digital readiness is now essential

MTD is not just about submitting figures more often; it is about how those figures are captured. HMRC will only accept data submitted through compatible digital software, meaning spreadsheets alone may no longer be sufficient unless correctly integrated.

Industry insight from Property Industry Eye suggests that landlords who fail to adopt compliant systems early are likely to face rushed decisions and avoidable costs closer to the deadline.

The landlords best placed for April 2026 are those already using professional systems or working with agents and accountants who can manage reporting accurately on their behalf.

The growing role of professional management

As regulation increases across the rental sector, from the Renters’ Rights Act to tax reform, professional property management is becoming less of a convenience and more of a risk-management tool.

Accurate rent records, clear expense tracking, and timely reporting are no longer just good practice; they are compliance necessities. Managed landlords benefit from:

•       Structured, digital-ready record keeping
  
  
•       Consistent income and expense reporting
  
  
•       Reduced exposure to penalties and errors
  
  

This is particularly relevant for landlords balancing multiple properties, other employment, or changing legislation.

Making Tax Digital for landlords 2026: plan now, not later

As January ends, landlords should already be assessing their readiness for Making Tax Digital. Waiting until April risks rushed onboarding, unfamiliar systems, and preventable mistakes during the first reporting cycle.

The transition does not have to be disruptive but it does require planning, clarity and support.

What landlords should do next

With the April deadline approaching fast, now is the time to act. Review your rental income and record-keeping systems to ensure they meet HMRC’s digital requirements.

As the tax landscape evolves, one thing is clear: Making Tax Digital is not just a reporting change; it is a shift in how landlords operate. Those who adjust early will move into the 2026–27 tax year with confidence, control, and clarity.

Speak with a local lettings or property management expert about services that simplify compliance and reduce administrative risk.