{"id":12898,"date":"2026-02-23T12:54:13","date_gmt":"2026-02-23T12:54:13","guid":{"rendered":"https:\/\/www.craneandco.co.uk\/pages\/?p=12898"},"modified":"2026-02-23T12:54:13","modified_gmt":"2026-02-23T12:54:13","slug":"making-tax-digital-for-landlords-starts-soon-are-you-ready","status":"publish","type":"post","link":"https:\/\/www.craneandco.co.uk\/pages\/making-tax-digital-for-landlords-starts-soon-are-you-ready\/","title":{"rendered":"Making Tax Digital for Landlords Starts Soon \u2013 Are You Ready?"},"content":{"rendered":"

Making Tax Digital is a new way to file your accounts with HMRC. Landlords must start using it as soon as April this year (depending on your turnover). Here\u2019s our pain-free guide to what you need to know and how to get ready.<\/strong><\/span><\/h3>\n

What is Making Tax Digital?<\/strong><\/span><\/h3>\n

Making Tax Digital (or MTD) is a new HMRC scheme. It means self-employed landlords must keep all their financial records and file their Income Tax returns digitally.<\/p>\n

Paper records won\u2019t be allowed anymore. (So, no more shoe boxes in the back of the wardrobe.)<\/p>\n

When you need to use it<\/strong><\/span><\/h3>\n

If you\u2019re a self-employed landlord and your qualifying income was \u00a350,000 or more in the 2024\/2025 tax year, you\u2019ll need to start using MTD from 6 April 2026.<\/p>\n

This lowers to \u00a330,000+ in April 2027. It is planned to drop it to \u00a320,000+ in April 2028.<\/p>\n

Suppose you have other self-employed businesses; the income from those counts towards the total. You\u2019ll need to use MTD for them too.<\/p>\n

This scheme doesn\u2019t cover limited companies. Neither are partnerships included \u2013 at least for now.<\/p>\n

How to get started<\/strong><\/span><\/h3>\n

You\u2019ll need HMRC-recognised, MTD-compatible accounting software. The HMRC website has a list.<\/p>\n

If you already use accounting software, it may be compatible. Check with your provider.<\/p>\n

If you\u2019re attached to spreadsheets and can\u2019t give them up, you may be able to use bridging software to make them work with MTD.<\/p>\n

Once you\u2019re signed up with HMRC, you\u2019ll have to file a quarterly update every three months. Then, a tax return each year, same as now.<\/p>\n

You won\u2019t have to pay any tax due sooner under MTD. (But we wonder how long that one will last.)<\/p>\n

Pros and cons<\/strong><\/span><\/h3>\n

Switching to MTD will involve some initial disruption. It could be a steep learning curve for some.<\/p>\n

However, MTD could save you time on paperwork.<\/p>\n

With MTD, you\u2019ll be able to spread your record-keeping across the year, rather than waiting until the end of the tax year and doing it all in one hard-to-digest chunk.<\/p>\n

You\u2019ll also receive a quarterly snapshot of your business’s performance. And how much tax you\u2019re going to have to stump up at the end of the year.<\/p>\n

What to do now<\/strong><\/span><\/h3>\n

Monitor your turnover to determine when you\u2019ll need to start using MTD.<\/p>\n

HMRC are planning to send letters to those they think need to start using MTD \u2013 but don\u2019t bank on it.<\/p>\n

If you have an accountant, take their advice. (This article is a general guide and not financial advice.)<\/p>\n

If you use a letting agent, liaise with them to ensure a smoother transition.<\/p>\n

If we can help with any aspect of letting or managing your rental property, please don\u2019t hesitate to call us.<\/p>\n

Estate Agency Done Ethically<\/strong><\/span><\/h3>\n

We are proud members of the Ethical Agent Network (EAN).<\/p>\n

A national group of independent agents who have been independently tested to ensure we meet strict standards of honesty, service, professionalism and community care.<\/p>\n

To learn more about what we do and why we are the only local agency admitted to the network, contact us today.<\/p>\n","protected":false},"excerpt":{"rendered":"

Making Tax Digital is a new way to file your accounts with HMRC. Landlords must start using it as soon as April this year (depending on your turnover). Here\u2019s our pain-free guide to what you need to know and how to get ready. What is Making Tax Digital? Making Tax Digital (or MTD) is a […]<\/p>\n","protected":false},"author":3,"featured_media":12899,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[36],"tags":[25,34],"class_list":["post-12898","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlords","tag-jerry","tag-landlords"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/12898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/comments?post=12898"}],"version-history":[{"count":1,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/12898\/revisions"}],"predecessor-version":[{"id":12900,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/12898\/revisions\/12900"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/media\/12899"}],"wp:attachment":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/media?parent=12898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/categories?post=12898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/tags?post=12898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}