The rollout of Making Tax Digital (MTD) for Income Tax is no exception. But in reality, MTD is far less momentous than it appears, and can even be seen as a welcome evolution.
Clarity and consistency
From April 2026, landlords with gross income above £50,000 per year from rental income and / or self-employment will start reporting income quarterly using HMRC-compatible software.
MTD for Income Tax applies to UK landlords who complete a self-assessment tax return, landlords with qualifying income above the £50,000 threshold and individuals (not limited companies). From April 6th, 2027, the threshold lowers to £30,000, and from April 6th, 2028, the threshold lowers again to £20,000.
It marks a clear departure from the traditional once-a-year scramble to pull together receipts, statements and paperwork. And while the direction of travel may feel unfamiliar, it is rooted in something the sector has long needed: clarity, consistency and digitisation.
Many landlords already use digital tools to track expenditure, reconcile income or manage their portfolios. For them, MTD won’t dramatically alter how they operate but it will formalise practices that are already widely adopted with the hope to reduce errors and make tax reporting more accurate and up to date.
The truth is that quarterly reporting is far lighter than people imagine.”
The instinctive reaction is to see MTD as yet another demand on landlords’ time, but the truth is that quarterly reporting is far lighter than people imagine.
These aren’t full tax returns; they’re snapshots and can be seen as a way to keep on top of performance rather than last-minute attempts to reconstruct an entire year of financial activity. The changes will see landlords need to keep digital records, use HMRC-approved software to send quarterly updates and submit a final declaration at the end of the tax year.
Landlords with managing agents will have access to technology, such as Lomond’s Propertycloud, that will be able to support them with their returns and make the transition to MTD smoother.
It’s a shift that, if embraced, could help landlords and investors to make more informed decisions, spot issues earlier and ultimately strengthen their long-term investment strategy.
In a period of broader uncertainty, the MTD reform should be viewed as an administrative evolution and not a huge upheaval for the sector. Crucially, landlords are not expected to manage this alone. Professional agents, accountants and digital platforms will play a large role in smoothing the transition. Those who take steps now will not find themselves rushing as the deadline approaches.
Property will remain resilient
For investors, this moment is also a reminder that UK property remains a fundamentally resilient investment and asset. Regulatory change has always been part of the landscape, and the most successful landlords are those who adapt early, plan ahead and stay close to the experts who can help them navigate it. MTD will not impact the appetite for investment, nor will it change the strong market fundamentals underpinning demand across the country.
If anything, digital tax reporting brings landlords in line with the modern expectations of any well-run business: to operate transparently, efficiently and with accurate real-time information. These are qualities that benefit not just HMRC, but landlords themselves.
The right support, right on time
Although we cannot ignore that MTD marks a shift for the sector, it doesn’t have to be something to fear. With preparation and the right support from managing agents, landlords can treat this as the administrative housekeeping it is – and not the final straw pushing landlords to exit the market. The best thing landlords can do now is understand when the change applies to them, move to digital records slowly, and choose the right software and professional support.
At Lomond, we’ll continue supporting landlords through every stage of changes within the legislation, ensuring they remain confident, compliant and able to make strong, strategic decisions. And in many ways, MTD may just be the start of a more modern, data-driven era for the sector, one that ultimately leaves landlords better equipped, not worse.
The post BLOG: Why Making Tax Digital is a welcome evolution for the sector appeared first on The Negotiator.
