Making Tax Digital is coming, and the landlords who will find the transition easiest are the ones who prepare early. Leaving it until April 2026, or whenever your start date arrives, to think about software, record keeping, and the quarterly reporting process is a recipe for unnecessary stress. This guide sets out a practical checklist of everything you should do, and when to do it.
The first step is confirming your MTD start date. This depends on your combined gross income from property and self-employment:
| Start Date | Income Threshold |
|---|---|
| April 2026 | Above £50,000 |
| April 2027 | Above £30,000 |
| April 2028 | Above £20,000 |
Look at your most recent Self Assessment return and add up your rental income and any self-employment income. Do not deduct expenses, the threshold is gross income. Employment income, pension, savings interest, and dividends do not count.
Once you know your start date, spend some time understanding the MTD process:
Understanding the process in advance means the first quarterly deadline will not take you by surprise.
How do you currently track your rental income and expenses? If the answer is a spreadsheet, a folder of receipts, or a rough notebook, you have some work to do before MTD begins. Your records need to be kept digitally in a format that your MTD software can read and submit.
Now is a good time to review your income and expense categories and make sure you are recording everything you are entitled to claim. Common gaps include:
This is one of the most important decisions. You need software that:
Make this choice at least three to six months before your start date. This gives you time to set up the software, enter your historical records, and test the process before your first real deadline.
Before you can make your first MTD submission, you need to sign up for Making Tax Digital through your software. This links your Government Gateway account to the MTD system. The registration process can take a few days, so do not leave this until the day before your first quarterly deadline.
Your software should guide you through the sign-up process. With SimplifyMTD, the registration and HMRC connection are part of the initial setup, you connect your HMRC account and the software handles the rest.
Once your software is set up, start recording income and expenses as they occur, ideally from the start of your first MTD quarter. The sooner you build the habit of logging transactions digitally, the easier each quarterly submission will be.
Practical tips for staying on top of records:
Your first quarterly submission covers the first three months of your first MTD tax year. This is the most important milestone, completing it successfully confirms that your software is working, your HMRC connection is live, and your records are in the right format.
Do not be concerned if your first submission takes longer than expected. After the first quarter, the process becomes more familiar and subsequent submissions typically take much less time.
Preparation is the difference between a smooth MTD experience and a stressful one. Landlords who understand the process, choose software early, and build good record-keeping habits before their start date will find the quarterly reporting cycle straightforward. Those who wait until the last moment will find themselves rushing to catch up.
SimplifyMTD is built to make this preparation and ongoing reporting as simple as possible for landlords, guiding you from initial setup through every quarterly update and Final Declaration.