For landlords across the UK, the days of paper records and spreadsheet-based tax returns are rapidly coming to an end. The government’s Making Tax Digital (MTD) initiative is extending its reach—and property owners need to be ready.
What began as a compliance exercise for VAT-registered businesses has become a sweeping reform of the UK’s tax system. Now, MTD is heading straight for the rental sector. From April 2026, landlords earning over £50,000 in annual rental income will be required to keep digital records and submit quarterly updates to HMRC using MTD-compatible software. A year later, the threshold drops to £30,000—capturing the vast majority of private landlords.
This shift isn’t just about ticking boxes. It demands new tools, new habits, and a clear understanding of the technology required to stay compliant. Enter: MTD software for landlords.
Why MTD Is Coming for Landlords
The move to digital tax reporting is part of HMRC’s broader strategy to reduce errors, improve efficiency, and modernise its outdated systems. According to the government, more than £8.5 billion in tax was lost last year due to avoidable mistakes—many of them linked to manual record-keeping.
For landlords, the change is significant. No more annual paper tax returns. Instead, you’ll be expected to:
- Maintain digital records of all rental income and allowable expenses
- Submit updates to HMRC every quarter via approved software
- File a final annual declaration confirming your earnings
The idea is to create a more accurate, real-time view of a landlord’s tax position—both for the taxpayer and HMRC.
The Case for Using MTD Software
While some landlords may see MTD as yet another regulatory burden, the right software can turn this into an opportunity. MTD software for landlords isn’t just about compliance—it can streamline your entire property finance workflow.
Here’s how:
- Automated Record-Keeping
The best MTD software links directly to your bank accounts and property management tools, pulling in income and expenses automatically. This eliminates the need for manual data entry and reduces the risk of errors.
- Real-Time Tax Insights
Quarterly updates force landlords to keep their records up to date. But that also means you’ll have a much clearer picture of your tax liability as the year progresses—helping with cash flow planning and reducing surprises at year-end.
- Centralised Portfolio Management
Many MTD-compatible tools offer additional features: rent tracking, maintenance logs, document storage, and even tenant communications. For portfolio landlords juggling multiple properties, that level of integration can be a game-changer.
- Audit-Ready Submissions
Digital records and automated submissions mean less paperwork—and less panic—if HMRC comes calling. Everything is logged, backed up, and accessible from a single dashboard.
What to Look for in MTD Software
Not all MTD software is created equal. Some packages are built for accountants and may feel overly complex for small landlords. Others may lack key features landlords need to stay organised across tenancies.
Here are key factors to consider when choosing the right MTD software:
- HMRC Compliance: First and foremost, make sure the software is on HMRC’s approved list of MTD-compatible tools.
- Landlord-Specific Features: Look for tools that go beyond basic accounting—such as rental income tracking, property-specific reporting, and support for mortgage interest relief rules.
- Ease of Use: If you’re not an accountant, choose a platform with a clean, intuitive interface and helpful customer support.
- Integration: Can it link with your bank accounts, letting agents, or property management systems? Integration cuts down on manual work.
- Scalability: If you own one property now but plan to grow your portfolio, make sure the software can scale with you.
RentalBux Insight: The Rise of Smart Landlord Tech
At RentalBux, we’ve seen a surge in landlords asking not just how to comply with MTD, but how to take advantage of digital tools to run smarter, more efficient property businesses.
The new wave of landlord-focused MTD software reflects this shift. Increasingly, landlords are looking for platforms that combine:
- MTD compliance tools
- Rental income automation
- Tax forecasting features
- Portfolio-wide analytics
This isn’t just about submitting quarterly returns. It’s about unlocking better financial control, greater transparency, and more time to focus on growth.
Preparing for April 2026—and Beyond
If you’re a landlord earning more than £50,000 in rental income, the MTD start date is now less than a year away. That means the time to act is now.
Here’s a simple checklist:
- Confirm your MTD status: Know when the rules apply to you—April 2026 or April 2027.
- Choose your software: Pick a tool that fits your portfolio and is fully MTD-compliant.
- Digitise your records: Start logging income and expenses in your new software ahead of time.
- Test the system: Run a few trial updates before you’re legally required to submit.
- Talk to your accountant: They may be able to recommend software or even manage submissions on your behalf.
Final Thoughts: Don’t Let MTD Catch You Off Guard
The shift to Making Tax Digital is unavoidable. But with the right software, it doesn’t have to be painful. In fact, it could be the nudge many landlords need to modernise how they manage their finances—and save time, money, and stress in the process.
MTD software for landlords is no longer just a nice-to-have. By April 2026, it will be the standard. The landlords who prepare now will not only avoid penalties—they’ll gain a powerful edge in managing their property business more efficiently.
Need help choosing the right MTD software for your portfolio?
At RentalBux, we’re building smarter tools to make property finance easier—from digital record-keeping to real-time tax tracking. Visit RentalBux.co.uk to explore our landlord tech solutions or sign up for early access.
