Making Tax Digital for Landlords
Our survival guide to the changes coming in for property landlords.
Making Tax Digital (MTD) for landlords: our free guide to the changes coming in for property landlords
Making Tax Digital (MTD) for landlords: our free guide to the changes coming in for property landlords
Who will be affected: Landlords with: rental income, plus UK self-employed income over £50,000 (this threshold will lower to £30,000 in 2027 and to £20,000 at a date to be announced – 2028 is probable) and who have a UK National Insurance number.
Tax returns for the UK property landlord. Making UK tax easy for property owners. Whether you are a UK landlord or a non-resident landlord, Landlords Tax Services provide a complete property tax service which ensures your UK tax affairs are dealt with on time and worry-free. We do it all online and for a fixed fee. No surprises. No stress. Landlords Tax Services offer the easy, professional way to deal with the UK tax obligations of landlords. UK property tax laws are ever-changing and, with more and more people becoming investors and landlords of properties in the UK, Landlords Tax Services have created an easy to use service aimed at providing new or experienced landlords with an efficient system to fulfil their UK property tax needs. Tax Returns for landlords of UK property: the complete tax service for residential property landlords. Our UK based landlord tax accountants can help you comply with UK property tax laws wherever you are in the world. We provide an online, fixed fee property tax service that ensures that the UK tax liability of landlords is kept to a minimum. Our mission is to deal with all our clients’ tax affairs on time and with no stress.
Owners of UK rental property who live outside the UK are obliged to register for UK taxes whether any tax is due or not. The UK has Tax Treaties with over 130 other countries. These treaties generally include sections designed to prevent the same income being taxed twice. Usually the UK will tax UK rental income first and the other country will allow you to deduct the UK tax from the local tax up to an amount equal to the local tax. Tax Returns for the UK property landlord. British and EEA citizens living anywhere in the world, along with many other people living in the country of which they are citizens, are entitled to the UK “Personal Allowance”, a £0% rate band that means the first £12,570 of profit from rental may be free of tax in the UK, and profits between £12,570 and £50,270 are taxed at 20%. Higher rates apply to UK income in excess of £50,270 (2024-25 rates).
Confirmed: MTD will arrive in April 2026
If it sounds like a long time away, think again! In tax terms, April 2026 is just around the corner and it will creep up faster than you think. NOW is the time to start preparing, as there is a great deal for you and for us to do to get ready.
Contact us now to talk about MTD »
Some important changes are being made to the way HMRC collects information about your income from UK property
The changes are a result of the HMRC “MTD” (Making Tax Digital) initiative. These changes don’t come into effect for some time, but we want you to be ready when they the changes occur. The changes will require more effort from you, from us and from your letting agent.
Making Tax Digital (MTD) for landlords: our free guide to the changes coming in for property landlords.
Who will be affected?
Landlords with a UK National Insurance number and who have rental income and UK self-employed income over £50,000 (this threshold will lower to £30,000 in 2027 and to £20,000 at a date to be announced – 2028 is probable).
What are the changes?
The changes will require all qualifying landlords to file a Return each quarter. This quarterly Return will contain your rental income and expenditure using the same categories as you currently use in the UK Tax Return. The annual Tax Return will remain so that we can include other income, other expenditure missed earlier in the year, claims for other reliefs and other adjustments. The quarterly Returns must be filed within 30 days of the quarter end.
What will you need to do?
You will have to ensure that we receive copies of the letting agent’s statements by the second week of each month. At present, even where the agent sends statements to us monthly, we often don’t receive them until three or four weeks after the end of the month. This will no longer be sufficient. Please make sure your agent can get the information to us in good time. If you have no letting agent, then you will have to send to us your data by the end of the second week following each month end. Estimated figures will not be accepted by HMRC.
What will we do?
We will input all client data and analyse it using the same headings as appear in the UK Tax Return. We will split each figure on the agent’s statement where there are joint owners. Then we will populate the quarterly Return and file it with HMRC. Instead of having almost ten months to file your Return we will have just two or three weeks to prepare and file the Tax Returns of almost all of our clients. Inevitably this will mean an increase in fees — and we will announce these when the final version of the new HMRC regulations is published.
When?
The new structure applies from April 2026 (postponed from April 2023) — but we will all have to prepare for it over the coming months. There is a huge amount of work to be done, and HMRC has said the full penalty regime will apply from the outset.
HMRC
HMRC will not make any software available for taxpayers to file their own quarterly data.
We will publish further updates from time to time as we approach April 2026.
Making Tax Digital (MTD) for landlords: our free guide to the changes coming in for property landlords.
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