If you’re a landlord in the UK, the clock is ticking. From April 2026, landlords earning over £50,000 will be legally required to submit their income tax updates through Making Tax Digital software. By April 2027, that threshold drops to £30,000—bringing thousands more into HMRC’s digital net.
The change is part of HMRC’s broader Making Tax Digital (MTD) initiative: a sweeping overhaul of how tax is reported in the UK. It’s no longer enough to keep spreadsheets or paper files. Landlords must now maintain digital records and submit quarterly updates using approved software.
So what exactly is making tax digital software for landlords—and how do you choose the right one for your portfolio?
The Shift to Digital Tax: Why It Matters
Making Tax Digital is designed to reduce human error, simplify compliance, and modernise the UK’s tax system. But for landlords, it’s also a major shift in day-to-day financial management.
Until now, most landlords reported rental income once a year through a self-assessment tax return. Under MTD, you’ll be required to:
- Keep digital records of all rental income and expenses
- Submit income and expense updates to HMRC every quarter
- File a final end-of-period statement (EOPS) to confirm annual figures
That’s five submissions per year—per property business. Manual processes simply won’t cut it anymore.
What Is Making Tax Digital Software for Landlords?
At its core, Making Tax Digital software for landlords is a digital accounting tool approved by HMRC that allows you to:
- Record rental income and allowable expenses
- Categorise transactions in line with HMRC guidelines
- Submit quarterly reports and final declarations directly to HMRC
- Generate real-time summaries of your tax position
Some tools are built specifically for landlords, with property-focused features like rent tracking, maintenance logs, and multi-property reporting. Others are more generic accounting platforms with MTD functionality added in.
The right choice depends on the size of your portfolio, your accounting preferences, and how hands-on you want to be.
The Benefits of Using MTD Software
Many landlords view MTD as another regulatory headache. But there are compelling reasons to embrace the change—especially with the right tech in place.
- Accuracy and Fewer Mistakes
Digital record-keeping reduces the risk of data entry errors, missing receipts, and late submissions—three of the biggest pitfalls in traditional tax filing.
- Real-Time Tax Visibility
Instead of scrambling at the end of the tax year, landlords using MTD software can track liabilities as they go. This helps with budgeting, cash flow planning, and avoiding last-minute surprises.
- Streamlined Admin
The best MTD software automates repetitive tasks like categorising transactions or uploading receipts, freeing up more time to focus on managing your properties.
- Audit Protection
With everything stored securely in one system, you’re better prepared in case HMRC decides to review your records.
Features to Look For
When choosing Making Tax Digital software for landlords, make sure it meets both your compliance needs and practical property management requirements. Here’s what to prioritise:
- HMRC-Approved: Only use software that’s officially recognised by HMRC for MTD for Income Tax Self Assessment (ITSA).
- Property-Specific Tools: Look for features like per-property income tracking, support for mortgage interest relief, and integration with letting agents or bank accounts.
- Ease of Use: A clear interface, helpful dashboards, and in-app guidance make a big difference—especially for landlords who aren’t accountants.
- Mobile Access: If you manage properties on the go, choose software with a good mobile app.
- Scalability: Your software should work whether you own one flat or 15 rental properties—and grow with you.
The Cost of Doing Nothing
Missing the MTD deadline isn’t just inconvenient—it could be expensive. Failing to comply with the new rules may lead to:
- Late filing penalties
- Interest on unpaid tax
- Increased scrutiny from HMRC
More importantly, falling behind could make you less efficient and less profitable. The most successful landlords increasingly use digital tools to streamline operations, reduce admin, and make data-driven decisions.
RentalBux Insight: A Digital Future for Landlords
At RentalBux, we’ve seen first-hand how MTD is pushing landlords to upgrade their financial systems—and how the right software can turn compliance into an advantage.
Landlords who’ve made the switch to Making Tax Digital software often report:
- Quicker tax filing
- Better expense tracking
- More confident financial planning
We believe that embracing MTD for landlords isn’t just about staying on the right side of the law—it’s about running your property business smarter.
How to Get Started
If you’re new to digital accounting or feeling overwhelmed by the upcoming MTD changes, here’s a simple three-step plan:
- Check Your Income
If your rental income is above £50,000, you’ll need to be MTD-compliant by April 2026. Between £30,000 and £50,000? You’ve got until 2027—but it’s still worth preparing early.
- Explore Your Software Options
Review the list of HMRC-recognised providers and look for one built with landlords in mind. Choose software that makes compliance easy and helps you stay organised.
- Digitise Now, Not Later
Start moving your records to your new software now. That gives you time to get comfortable with the system and avoid a last-minute scramble when the rules kick in.
Final Thoughts
The transition to digital tax reporting isn’t just a technical upgrade—it’s a fundamental shift in how UK landlords manage their finances. And while making tax digital software for landlords might sound like just another regulatory hurdle, the right tool can do far more than help you tick a compliance box.
It can give you clarity. Efficiency. Confidence.
The landlords who act early will not only stay compliant—they’ll gain a competitive edge in an increasingly data-driven rental market.
Ready to take the next step?
Explore MTD-compliant tools at RentalBux, where we’re building digital solutions designed specifically for landlords. Stay ahead of HMRC deadlines—and ahead of the curve.
Visit RentalBux.co.uk to learn more.
