Making Tax Digital: Income Tax Self-Assessment for landlords

From 6 April 2026, self-employed individuals must comply with Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA). This includes landlords.

As part of the Government’s move to modernise the UK tax system, MTD for ITSA will require taxpayers to use MTD-compliant digital software to keep records of their tax and submit updates to HM Revenue & Customs (HMRC).

Who will be impacted?

MTD for ITSA will be compulsory for taxpayers from 6 April 2026 who are:

  • Registered for Self-Assessment
  • Receiving income from self-employment and/or property
  • Not exempt
  • Receiving an income over £50,000 (or £30,000 from 6 April 2027)

For landlords, this has a particular impact. It particularly affects those who are employed and paying Income Tax and must report additional income via ITSA.

How will this impact landlords?

MTD for ITSA will mean that landlords will need to move from paper-based or simple digital records to fully MTD-compliant software.

Learning new software can often be difficult, particularly for those who are not familiar with the systems already. This can add an extra administrative burden to the everyday property management of landlords.

The cost of this software can also pose a challenge. This can be done through updating existing systems, investing in new compliant software, or even potentially having to buy a computer to run it on.

These can become a burden for landlords who must file for ITSA.

Can you make MTD for ITSA easier?

Cloud accounting can be a good solution for navigating MTD for ITSA. It allows you to maintain digital records and perform online transactions whilst being MTD compliant.

With cloud accounting, you also have access to your up-to-date data, allowing for accurate and timely submissions for ITSA.

Your cloud accounting will also be able to adapt to changes in your portfolio, meaning that if your circumstances change your investment won’t be wasted.

If you are still unsure, you can also seek the help of an accountant. They can help you set up your cloud accounting software and offer further advice on complying with MTD.

Get in touch with our team today for more advice on MTD for ITSA.

Posted in blog, HMRC, Making Tax Digital, Self-Assessment, Tax.