From April 2026, a major shake-up is coming to the way landlords like you report your income to HMRC. Under the next phase of the Making Tax Digital (MTD) initiative, self-assessment tax returns for many property owners will be replaced with quarterly digital submissions. While the word “tax” rarely brings joy, understanding these changes now can help you avoid penalties, reduce stress, and possibly even streamline your financial affairs.

Let’s walk you through what’s changing, how it will affect you, and how Boydens is here to help.

What Is Making Tax Digital (MTD)?

Making Tax Digital is a government-led transformation of the UK tax system designed to make it more efficient, accurate, and easier for taxpayers to stay on top of their obligations. It already applies to VAT-registered businesses and will soon expand to landlords and self-employed individuals with annual income over £50,000 from April 2026, and over £30,000 from April 2027.

If you’re a landlord with rental income above the threshold, MTD will apply to you.

What’s Changing in April 2026?

Currently, landlords submit a single Self-Assessment tax return once a year. Under MTD for Income Tax, the process will look like this:

• Quarterly Updates: You’ll submit a summary of income and expenses every 3 months using HMRC-approved software.
• End-of-Year Finalisation: After the fourth quarter, you’ll send a Final Declaration to confirm your full tax position and make any final adjustments.
• Digital Record Keeping: You’ll need to maintain digital records of your rental income and expenses throughout the year.

Put simply: rather than one big deadline each January, your tax reporting becomes a rolling process across the year.

Who Will Be Affected?

You’ll be required to follow MTD for Income Tax if:

• You’re a private landlord, sole trader, or both.
• Your total gross income from these sources exceeds £50,000 in the tax year beginning April 2026.
• Your accounting period aligns with the tax year (though there are some transitional rules if it doesn’t).

It’s worth noting that this applies to your gross income, so even if your rental profit is modest, you may still fall under the new rules if your rental income exceeds the threshold.

What Does This Mean for You in Practice?

While MTD offers the promise of better tax visibility and fewer surprises, it also introduces more frequent reporting responsibilities. You’ll need:

• Digital bookkeeping software to track income and expenses.
• A basic understanding of quarterly submissions (or someone qualified to do it for you).
• To stay organised throughout the year, not just in the run-up to January.

How Boydens Can Help You Prepare

We understand that landlords have enough to think about already, maintenance, tenants, regulations, and market shifts, without new tax rules adding to the pile.

That’s why Boydens now offers specialist tax services through our trained and qualified accountants, who are well-versed in the MTD system. We can:

• Set you up with compatible software.
• Handle your quarterly submissions and final declarations.
• Keep you compliant and penalty-free.
• Advise on allowable expenses and efficiency.

Final Thoughts: Don’t Get Caught Off Guard

April 2026 may seem far off, but the best way to stay ahead is to prepare early. With Boydens by your side, you won’t just meet your obligations, you’ll do so with confidence and ease.

📞 Let’s Talk

Whether you manage one property or a portfolio, our in-house accounting team can take the stress out of MTD. Get in touch with us today to find out how we can help you stay compliant, and focused on what you do best.

Contact our landlord tax team now or pop into your local Boydens office.