Making Tax Digital 2026: What Landlords Must Do Now

By Steve Bond, Lettings Director at Beresfords

A significant shift in how landlords report their income is now firmly on the horizon. With April 2026 having marked the start of Making Tax Digital for many, attention is turning from awareness to action, and for landlords, preparation can no longer be delayed.

HMRC’s introduction of Making Tax Digital for Income Tax will fundamentally change the way many landlords operate. For those across Essex and Greater London, particularly those managing property alongside other income streams, this is not simply an administrative adjustment. It is a complete overhaul of the reporting process.

Under the new system, the familiar annual Self Assessment will give way to a far more regular and structured approach. Landlords will be required to maintain digital records throughout the year and submit updates via to HMRC approved digital platforms on a quarterly basis, followed by a final annual declaration to confirm overall accuracy. While the objective is to improve transparency and reduce errors, the practical impact for landlords is clear. There will be more deadlines to manage, more data to track, and far less room for delay.

The first phase of this rollout begins in April 2026 and will apply to landlords with qualifying income exceeding £50,000. Qualifying income if self-employed is not only rental income but also that from any other employment. Further thresholds will follow in the years after, gradually bringing more landlords into scope. Crucially, qualifying income relates to total revenue rather than profit, meaning many landlords may find themselves affected sooner than expected.

What makes this change particularly important is the timing. The first quarterly qualifying period is 6 April – 5 July with the filing deadline being 7 August.

Landlords who are not already using digital tools or structured record keeping processes may find themselves under pressure to adapt, hence the importance of getting set up as soon as possible.

Alongside these changes, HMRC will also introduce a points-based penalty system from April 2027. Missed deadlines will no longer be a one-off issue. Instead, they will accumulate, with financial penalties applied once a threshold is reached. For landlords who are used to a single annual submission, this represents a notable shift in both mindset and responsibility.

At the same time, Making Tax Digital does not exist in isolation. It arrives alongside wider regulatory changes within the lettings sector, including the Renters Rights legislation, reinforcing a clear direction of travel towards greater compliance and accountability for landlords.

In response, Beresfords has already begun preparing to support landlords through this transition. As an award-winning estate and letting agency with a strong presence across Essex and Greater London, the focus has been on developing practical solutions that remove complexity and save time. New systems are being introduced to provide clearer financial summaries and improved options for automated integration, helping landlords manage their obligations more efficiently.

This shift is also influencing how landlords choose to manage their portfolios. Increasingly, there is a move by many landlords towards fully managed services, where the administrative and compliance burden can be handled professionally by an agent although those considering such an option should always undertake a reasonable level of due diligence on whichever agent they are considering as many are simply not equipped or qualified to meet all that is required especially from a compliance perspective.. For any serious landlord it should not simply be about convenience but also, navigating an ever-changing regulatory landscape.

For those unsure where they stand, now is the time to take stock. Understanding your income position, reviewing how records are currently kept, and considering whether existing processes will meet future requirements are all sensible first steps.

Making Tax Digital is coming, and while it brings challenges, it also presents an opportunity to introduce better systems, clearer financial visibility, and more structured management of property investments.

Beresfords will continue to guide landlords through every stage of this transition, offering expert advice backed by an award-winning service. If you would like to understand how these changes affect you, or explore ways to simplify your compliance, your local Beresfords lettings team is ready to help.