The NRLA helps you prepare for Making Tax Digital for Income Tax
As the Government's Making Tax Digital for Income Tax (MTD) scheme extends to landlords from 2026, the NRLA has produced a step-by-step guide to help our members understand the new requirements and stay compliant.
Who needs to sign up?
If you are a landlord paying income tax on your property income, you will need to register for MTD based on your annual rental income:
- From 2026: Landlords with annual property income of £50,000 or more in the 2024-2025 tax year must comply.
- From 2027: Extended to landlords earning £30,000 or more annually.
- From 2028: Due to apply to all landlords with income of £20,000 or more per year.
Important: Limited company landlords are not affected by MTD and will continue to pay corporation tax as usual.
Frequently asked questions
Do I have to sign up for MTD? Yes – if you are a landlord who pays income tax via self-assessment and meet the property income thresholds above. Visit the HMRC website to check if you are eligible and complete your registration.
How often do I have to submit returns? MTD requires you to submit quarterly income and expenditure summaries throughout the tax year, plus a Final Declaration at year-end.
What penalties apply? From April 2026, HMRC will introduce a points-based penalty system. You'll receive one point for each missed deadline or submission. Once you accumulate four points, financial penalties will be imposed.
Your MTD obligations
To comply with MTD, you must:
- Keep digital records – Maintain your business records using MTD-compatible software.
- Submit quarterly updates – Send income and expenditure summaries to HMRC every three months.
- Communicate digitally – All submissions must be made through HMRC's API (Application Programming Interface) platform. This means ensuring your accounting software is MTD-compatible and can communicate directly with HMRC's systems.
- File annual declarations – Submit your Final Declaration by the usual self-assessment deadline.
Getting ready for MTD
Detailed guidance: We've produced a comprehensive breakdown of all the changes
Training courses: Join our specialised training sessions designed to ensure you're fully prepared for compliance – reserve your place here.
Stay informed: Subscribe to our weekly e-newsletter and follow us on social media for the latest updates on Making Tax Digital for Income Tax and other landlord issues.
