From April 2026, landlords earning over £50,000 annually will be required to comply with Making Tax Digital for Income Tax Self-Assessment (MTD ITSA). If that includes you or your clients, now is the time to get prepared.

What’s Changing?

• Quarterly digital submissions will replace the annual paper tax return.

• You’ll need to keep digital records and use HMRC-approved software to report income and expenses.

• A final end-of-year digital declaration will still be due by 31 January.

What This Means for You

• Landlords will likely face higher admin costs, either through software subscriptions or accountant fees.

• There’s a new penalty system – late or incorrect submissions could lead to fines or interest charges.

• Staying on top of finances will need to become a year-round habit, not just a once-a-year activity.

Huge Spike in Demand – But Little Support

According to analysis by finance firm RIFT:

• Online searches for “Making Tax Digital” more than quadrupled in the first half of this year.

  • March alone saw over 34,000 searches.

  • April and May saw average monthly searches climb to 43,648 – suggesting growing confusion and concern.

HMRC Helplines Are Buckling

• Nearly 600,000 calls to HMRC went unanswered in January.

• Over 500,000 more were missed in February.

• The average time to speak to someone has doubled – from around 10 minutes in October to over 21 minutes by February 2025.

The Verdict

“HMRC simply isn’t equipped to deal with the surge in questions. Many landlords are being left to find their own answers online.”
— RIFT spokesperson

Takeaway for Landlords & Letting Agents

If your rental income is likely to exceed £50,000 from April 2026, you must get ready:

• Start digitising your records now.

• Research approved software options.

• Speak to your accountant (or find one!) to understand how the changes affect you.

Letting agents should also consider supporting clients through the transition – whether through software partnerships, referrals, or educational materials.