Making Tax Digital Checklist for Landlords
If you’re a landlord generating rental income, you’ve probably heard of Making Tax Digital (MTD). It may not be mandatory for everyone yet, but it’s on the way — and it’s wise to prepare in advance.
Below is our Making Tax Digital Checklist for Landlords, along with a few notes and common oversights we see time and again.
1. Check if you’re affected by Making Tax Digital
If your total income from property or self-employment is over £50,000 a year (before expenses), you’ll need to comply from 6 April 2026.
If your income is above £30,000, your start date is April 2027.
If your income exceeds £20,000, you’ll need to comply later, from April 2028.
If your income is below those thresholds, you’re not required to switch yet — though you can join early.
Quick Tip: Work out your total property income before expenses and see where you fall. If you’re close to the limit, prepare as if you already need to comply. It’ll save you a rush later.
2. Choose and set up compatible software
Under MTD, you must keep digital records and submit your updates using software approved by HM Revenue & Customs (HMRC).
If you’re unsure which software fits your needs, speak to your local Rosemary Bookkeeper. We offer complimentary consultations to help you determine which MTD-compatible software is best suited for managing your property income and expenses.
Quick Tip: Still using spreadsheets or paper rent records? Now’s the time to switch. Getting accustomed to software before it becomes mandatory makes things far easier when deadlines arrive.
3. Keep your property records digital and organised
This goes beyond basic bookkeeping. Landlords within MTD’s scope must store their income and expense records digitally, not just on paper.
Key items to include:
- All rental income, letting fees, and allowable expenses are recorded digitally.
- Check that your current system or cloud software is MTD-compatible.
- If you’re using both paper and digital systems, consider transitioning to a fully digital setup.
- Keep your records ready for quarterly submissions once the rules apply.
Quick Tip: Many landlords wait until year-end to catch up. Don’t. Doing it quarterly not only keeps you compliant but also helps you track profits and taxes more easily. Your local Rosemary Bookkeeper can help you set this up properly.
4. Sign up (or prepare to sign up) with HMRC
When you meet the MTD threshold, you’ll need to register for MTD for Income Tax through your software or agent rather than directly via the old HMRC portal.
Before signing up, check you have:
- Your National Insurance number.
- Your business or property start date (if applicable).
- Software linked to HMRC.
- An agent or bookkeeper who’s also ready for MTD.
Quick Tip: Rosemary Bookkeeping can manage this process for you. We’re fully equipped for MTD and can even handle your HMRC Gateway setup as part of our support.
5. Prepare for quarterly updates and the final declaration
Instead of filing a single annual Self Assessment, you’ll send quarterly updates of your property income and expenses under MTD. Then, after the tax year ends, you’ll file a final declaration to confirm figures.
Example quarterly deadlines:
- 6 April–5 July: due 7 August
- 6 July–5 October: due 7 November
- 6 October–5 January: due 7 February
- 6 January–5 April: due 7 May
Final declaration: 31 January following the end of the tax year.
Quick Tip: Think of these updates as regular check-ins rather than admin chores. They give you a clearer view of your finances and cash flow. And with a Rosemary Bookkeeper, they’ll happen smoothly every quarter.
6. Check if you qualify for any exemptions
Some landlords may be exempt, though it’s rare. Possible exemptions include:
- If it’s “not reasonably practicable” for you to keep digital records (for example, due to disability or location).
- If your total income is below the threshold.
Quick Tip: You’ll need to apply if you believe you qualify. But try not to see that as an easy way out. It’s better to get digital-ready now, even if you’re not yet required to switch. We can explain what counts as an exemption if you’re unsure.
7. Review your bookkeeping now and tidy up old records
Even if your start date is a year or two away, you’ll thank yourself later for getting ahead.
Ask yourself:
- Do you store rental income and receipts digitally?
- Are your property expenses recorded and categorised correctly?
- Is your bookkeeping up to date?
- Do you know how to use your software confidently?
Quick Tip: If you answered “no” to a few of those, it’s time to act. Cleaning up records now saves headaches later.
Take a moment to think about it. Many landlords assume MTD doesn’t apply to them yet — and maybe not this year, but it will. A last-minute scramble rarely ends well. One misplaced invoice or late submission can cost you time and money.
Treat this as preparation, not panic. And if you’d like help, your local Rosemary Bookkeeper can walk you through each step, set up your software, and make sure you’re ready for Making Tax Digital with confidence.
