The UK Government is rolling out Making Tax Digital (MTD) as part of a wider plan to modernise the tax system. If you earn income from UK property, whether you live in the UK or overseas, these changes are likely to affect how you report your tax to HM Revenue & Customs (HMRC).
Below is a clear, practical overview of what MTD means for landlords and what you should do next.
What is Making Tax Digital?
Making Tax Digital is a government initiative that requires taxpayers to keep digital records and submit tax information to HMRC using approved software, rather than paper records or manual spreadsheets.
For landlords, this applies under MTD for Income Tax Self Assessment (ITSA) and represents a move away from the traditional once-a-year tax return.
When will Making Tax Digital apply to landlords?
You will need to comply with MTD if your gross annual income from UK property and or self-employment exceeds:
- £50,000 from April 2026
- £30,000 from April 2027
- £20,000 from April 2028 (confirmed in the Spring Statement on 26 March 2025)
These thresholds apply regardless of whether you are UK-based or an overseas landlord, as long as the income relates to UK property.
What will change under MTD?
If you are within scope, you will no longer submit just one annual Self Assessment return. Instead, you will need to:
- Keep digital records of rental income and allowable expenses
- Use HMRC-compatible accounting software
- Submit quarterly updates to HMRC
- Complete an end-of-year final declaration
The quarterly submissions are summaries, not full tax calculations, but they are mandatory.
UK landlords vs overseas landlords: is there a difference?
The core MTD requirements are the same for UK-resident and non-UK-resident landlords if they earn UK property income above the thresholds.
However, overseas landlords should be aware that:
- They are still required to comply with MTD even if they already file under the Non-Resident Landlord Scheme
- Managing digital submissions can be more complex across time zones and jurisdictions
- Appointing a UK-based accountant or tax adviser is often the most practical way to remain compliant
In short, MTD applies equally, but overseas landlords may benefit more from professional support.
What should landlords do now?
If you already use a tax accountant, they may have contacted you about these upcoming changes.
If you currently:
- Complete your own tax return
- Keep records manually
- Use spreadsheets only
You should start planning now by either:
- Moving to MTD-compliant accounting software, or
- Appointing a tax adviser or accountant to manage compliance on your behalf
Preparing early will help avoid last-minute pressure when MTD becomes mandatory for you.
How Edwards & Plumb Property Management can help
Edwards & Plumb Property Management can put you in touch with a trusted tax adviser or accountant who can help you prepare for Making Tax Digital and assist with your future tax returns.
If you would like an introduction or have any questions, please do not hesitate to contact us.
