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Making Tax Digital for Income Tax (MTD for IT) is the UK governments ambitious plan to modernise the UK tax system. Taxes need to be filed digitally through an HMRC-recognised software and there are quarterly submission requirements.
MTD is already in place for all VAT registered businesses, and MTD for landlords began being phased in from April 2026.
MTD represents a big shift in how the HMRC are expecting people to manage their finances and submit their taxes. There are a few things that you need to know and do to ensure you are prepared and don’t get caught out or surprised when your own threshold is reached.
Key Dates: MTD for Income Tax
Since 6 April 2026 it has applied to landlords and self-employed individuals earning above the income threshold of £50,000.
From April 2027 it will affect landlords and self-employed individuals earning above £30,000, and from April 2028 those earning above £20,000.
Related: Making Tax Digital For Landlords: The Complete Guide
MTD for Landlords Checklist
Download the free MTD checklist (PDF) or read through the MTD prep checklist below.
1. Find out if MTD affects your rental business
There are currently three key strands:
- MTD for VAT: Already a legal requirement for all VAT-registered businesses.
- MTD for Income Tax (MTD for IT):
- This has applied to landlords and self-employed individuals above the £50,000 income threshold since 6 April 2026.
- The threshold reduces to £30,000 from April 2027.
The threshold for MTD for IT reduces further, to £20,000, from April 2028.
2. Sign up for the MTD initiative via the HMRC website
You sign up for MTD for IT through HMRC's online service on GOV.UK, or your agent can sign you up. You'll also need HMRC-recognised software to send your quarterly updates once you're signed up.
“Registration has to be complete before any MTD software can connect. That was the single biggest thing holding people up in August.” Logan Ransley, Co-Founder, Landlord Studio, October 2026 MTD webinar
If you’re unsure how to go ahead, you can ask your software provider or your accountant or bookkeeper how to sign up for MTD for IT. As for the details you’ll need, HMRC will request the following information:
- business name,
- business start date,
- email address,
- national insurance number,
- accounting period,
- and accounting type to apply.
If you’re looking for more information, HMRC’s guidance on signing up is a handy resource.
3. Keep up-to-date digital records
Under the MTD for IT rules, you’ll need to keep up-to-date digital records throughout the tax year. This includes all income for self-employment or your property investments, you will need to start keeping digital records from the beginning of the accounting period you are signing up for and keep them updated throughout this period as these records will need to be submitted quarterly to the HMRC using HMRC-recognised software.
Choosing the right property accounting software then is essential as the wrong one could heavily burden you, causing additional stress and challenges.
Landlord Studio offers simplified income and expense tracking, paired with powerful accounting tools and reporting. Easily keep your bookkeeping up to date with features like our receipt scanner which will automatically input the receipt details for you, bank feeds that allow you to view and reconcile transactions in real time, and our mobile app so that you can update your books wherever you are.
Landlord Studio is HMRC-recognised and MTD compliant, with direct HMRC integration.
4. Get access to HMRC-recognised MTD software
In order to submit your tax return under the MTD rules, you'll need up to date digital records and access to HMRC-recognised software.
Landlord Studio makes keeping digital records easy, and allows landlords to comply with MTD regulations through our direct HMRC integration, or via our Xero integration. Seamlessly sync all of your financial data to Xero to avoid double-handling of data and take advantage of Xero’s powerful customisable reports, then easily complete your quarterly updates and final declaration.
5. Prepare for quarterly submissions
Under MTD you send updates for each income source to the HMRC every 3 months. These updates are summaries of your business income and expenses.
These quarterly updates need to be submitted within one month of the end of that quarterly period. If you don’t submit by this deadline, you may have to pay a penalty.
Use standard quarterly period dates
The standard quarterly periods and deadlines in each tax year are:
| Period Covered | Filing Deadline |
|---|---|
| Quarterly Update 1: 6 April to 5 July | 7 August |
| Quarterly Update 2: 6 April to 5 October | 7 November |
| Quarterly Update 3: 6 April to 5 January | 7 February |
| Quarterly Update 4: 6 April to 5 April | 7 May |
The quarterly submission deadline is a month later than the end of the quarter giving you an extra 30 days to update your books and get your accounts in order each quarter.
Alternatively, businesses can make a 'calendar quarter election,' which allows them to draw up quarterly updates to the end of the previous month. Where this election is made, the quarterly updates will be as follows.
| Period Covered | Filing Deadline |
|---|---|
| Quarterly Update 1: 1 April to 30 June | 7 August |
| Quarterly Update 2: 1 April to 30 September | 7 November |
| Quarterly Update 3: 1 April to 31 December | 7 February |
| Quarterly Update 4: 1 April to 31 March | 7 May |
The first quarterly updates under MTD for IT were due for filing by 7 August 2026 and covered either the quarter ended 5 July 2026, or 30 June 2026 (where a calendar quarter election is in place).
Separate quarterly updates are required for each trade or property business carried on by an individual. There is no requirement to make tax or accounting adjustments to the information provided in quarterly updates.
6. Prepare your end-of-year statement
As well as quarterly updates, you'll need to provide a final declaration at the end of the tax year. You’ll submit an end-of-period statement for each income source. This is when you:
- make any accounting adjustments
- claim any reliefs
- confirm that the information you’ve sent is correct and complete
Once your final declaration is submitted, you’ll be able to see a tax calculation either in your software or in your HMRC account.
The deadline for submitting the end-of-period statements and paying any owed tax is 31 January after the end of the tax year. If you do not submit and pay by the deadline, you may have to pay a late submission penalty.
Are You Ready for MTD? Take The Quiz
Final Words: Making Tax Digital Checklist
If your own start date has not arrived yet, landlords need to start exploring software solutions sooner rather than later. The right software will offer easy-to-use accounting tools and allow you to update your accounts on the go via a mobile app.
Ultimately, this change means spending more time on bookkeeping throughout the year for many. Having a tool with time-saving features and automation will be invaluable in ensuring your books are accurate and your submissions are made on time.
Landlord Studio is an end-to-end property management and accounting solution designed for landlords. It offers easy income and expense tracking, a receipt scanner, and the ability to connect your bank account so that you can view and reconcile transactions in real-time.
Related MTD Content
- Making Tax Digital (MTD) for Landlords: The Complete Guide
- What Landlords Need To Know About MTD Quarterly Updates
- Free Making Tax Digital Resources for Landlords
- Making Tax Digital: How Landlord Studio Can Help You Stay Compliant
- Everything Landlords Need To Know About MTD for IT
- A Landlords Guide to Tax on Rental Income
- 6 Best Free MTD Software For Landlords