The way landlords report income and expenses to HMRC is set to change. From 6 April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) comes into play for many landlords, bringing in new rules, responsibilities, and a digital-first approach.
At Yorkshire Accountancy, we’re here to help landlords across Hull, Cottingham, and the UK get prepared for this shift.
Who will MTD apply to?
From April 2026, if you’re an unincorporated landlord or sole trader with a total rental and/or trading income of £50,000 or more, you’ll need to comply with MTD for ITSA. This includes rental income from unincorporated property businesses and any trading income as a sole trader. Income from limited companies is excluded.
📌 Example:
A landlord with £10,000 in rental income and £45,000 in sole trader income will be included under MTD from April 2026. Someone with £49,000 in rental income and no trading income will not — yet.
Your income for the 2024/25 tax year (filed by 31 January 2026) will determine if and when you’re brought into MTD.
What happens after 2026?
From 6 April 2027, MTD will apply to landlords earning £30,000 or more, and the government aims to extend this further to those with £20,000+ income before the end of the current Parliament.
What will change?
Currently, landlords submit a Self Assessment tax return once a year. Under MTD, you’ll be required to:
- Keep digital records
- Use MTD-compliant software
- Send quarterly summaries of income and expenses to HMRC
- Submit a final annual declaration
These quarterly updates align to either tax quarters (to 5th of July, October, January, and April) or calendar quarters (to 30th of June, September, December, and March).
The final declaration is similar to a traditional tax return, where you can claim allowances and report additional income (e.g. savings, investments, or employment).
💡 Important: There are no changes to when or how tax is paid — just how it’s reported.
How Yorkshire Accountancy can help
If you’re a landlord and unsure whether you’ll be affected — or how to prepare — now’s the time to act. We’ll help you:
- Identify your MTD start date
- Choose the right software
- Stay compliant without stress
Need help with MTD?
Contact Yorkshire Accountancy today and let us simplify the process for you.
