If you’re a self-managing or accidental landlord in England, Making Tax Digital for Income Tax (MTD ITSA) is one of those changes that’s easy to ignore… until it suddenly isn’t.
From 6 April 2026, MTD becomes mandatory for landlords (and sole traders) whose qualifying income is over £50,000, based on the 2024-25 tax year. The threshold then drops to £30,000 from 6 April 2027.
So what should you set up now so you’re not scrambling at midnight on 5th April?
1) First, work out whether you’re in the first wave
MTD ITSA uses qualifying income, which includes UK property income and/or self-employment income as declared on your Self-Assessment return.
If your qualifying income is:
- Over £50,000 (2024-25) → MTD from 6 April 2026
- Over £30,000 (2025-26) → MTD from 6 April 2027
If you’re anywhere near those numbers, assume you’ll need to comply soon and get the basics sorted now. Don’t leave it.
2) Pick your “MTD-ready” software (this is non-negotiable)
Under MTD ITSA, you (or your agent) must use compatible commercial software to:
- keep digital records of income/expenses
- Send quarterly updates
- Submit your end-of-year return by 31 January
HMRC provides a list of compatible software providers.
Also worth knowing—tax bodies have pointed out that HMRC won’t provide the same simple online filing journey as the old Self-Assessment, so software will be absolutely central. You can’t just wing it with a spreadsheet anymore.
Practical tip: If you’re currently “spreadsheet plus bank statements,” you can still keep your life simple by choosing software that works well with bank feeds and basic categories. You don’t need to get fancy.
3) Set up digital record-keeping (keep it boring and consistent)
MTD is primarily about making your rental admin routine. Your aim is to capture income and costs as you go, rather than reconstructing the entire year in a panic in January.
Set up:
- a clear list of expense categories (repairs, insurance, agent fees, safety certificates, mileage, whatever you spend on)
- a “receipt habit” (photo on phone → upload weekly, not “I’ll do it later”)
- a monthly 20-minute admin slot (actually book it in your calendar)
Your future self will thank you. Properly.
4) Understand what quarterly updates are (and what they aren’t)
Quarterly updates are summaries generated from your digital records. Importantly, HMRC guidance says you don’t need to make accounting or tax adjustments before sending them—your software totals up the categories and sends them.
So don’t overthink the quarterlies as “mini tax returns.” Think of them as regular check-ins that keep your records current and stop you from falling behind.
5) Create a simple “MTD folder structure” for each property
For each rental, keep:
- tenancy agreement
- safety docs (EPC/EICR/gas where relevant)
- deposit paperwork
- invoices/receipts by year
- rent ledger (or software record)
This isn’t just for tax—it’s useful for literally every landlord admin job. You’ll need this stuff anyway.
6) Decide whether you’ll DIY or use an accountant
If you already use an accountant, ask them now (not in March 2026):
- What software do they want you on
- whether they’ll submit quarterlies for you
- what it will cost (because some firms will price per update, and that adds up)
If you’re planning to DIY, still consider a one-off “MTD setup” session with an accountant to make sure you’re categorising things sensibly. An hour now saves you hours of stress later.
7) Do one “practice quarter” before April 2026
The smoothest way to avoid stress is to do a trial run:
- pick a start date (say, next month)
- Track income/expenses in your chosen software
- Reconcile your bank
- generate a quarterly-style report
By the time MTD is mandatory for you, it’ll feel like normal life instead of some massive, scary thing you’ve been putting off.
Look, MTD isn’t going away. You can either sort it out calmly now, or you can scramble later. Your choice.
