Landlords are among the groups most affected by Making Tax Digital for ITSA. Whether you own a single rental property or a full portfolio, new digital reporting rules will apply once MTD becomes mandatory.
Who Must Comply?
Landlords with combined property and business income above £50,000 in 2026 (or £30,000 in 2027) must join MTD.
Digital Records Required
Landlords must keep digital records of:
- Rental income
- Allowable expenses
- Repairs and maintenance
- Mortgage interest
- Agent fees
- Property improvements
Quarterly Reporting
You must submit quarterly summaries of rental income and expenses through approved software. These do not calculate your exact tax but keep HMRC updated on your business activity.
End-of-Period Statement (EOPS)
At the end of the year, an EOPS confirms the accuracy of the quarterly submissions and finalises allowable expenses.
Final Declaration
The last step each tax year replaces your Self-Assessment tax return.