MTD for Landlords: What You Need to Know Before the Rules Change
Introduction
Making Tax Digital (MTD) for Income Tax is edging closer — and if you’re a landlord earning over £50,000 in rental income, you’ll soon fall under the new rules.
This quick guide breaks down what MTD means, what counts as a “digital record,” and how to stay compliant without stress.
Do Landlords Need to Follow MTD?
Yes — if your total gross rental income exceeds £50,000, you’ll need to follow MTD for Income Tax when it goes live for landlords.
That means switching from spreadsheets and paper files to fully digital records and quarterly submissions through compatible software.
What Counts as a Digital Record for Landlords?
To stay compliant, you’ll need to record your rental income and expenses digitally. This includes:
Income
-
Rental payments
-
Service charges
-
Other property-related income
Expenses
-
Mortgage interest
-
Repairs and maintenance
-
Property insurance
-
Letting agent fees
-
Service fees and utilities paid on behalf of the tenant
Supporting documents
You must keep digital copies of:
-
Receipts
-
Invoices
-
Bank statements
-
Tenancy documents (recommended)
Your software should store and organise these automatically — no more shoeboxes of paperwork.
Tools That Make Life Easy
You don’t need to reinvent the wheel. A simple digital setup makes landlord accounting smooth and MTD-ready.
QuickBooks Online
Perfect for managing property income and expenses, automating categorisation, and preparing for quarterly submissions.
Dext
Snap photos of receipts, forward invoices, and let the software extract details automatically.
Brilliant for landlords with multiple properties and a lot of small receipts.
Automated Bank Feeds
Connect your bank to your accounting software so rental payments, mortgage interest, and costs are logged automatically.
Tips to Make MTD Easy for Landlords
Even if MTD feels daunting, the right habits make it simple.
1. Use Separate Bank Accounts Where Possible
Either one per property or grouped logically (e.g., residential vs. commercial).
This makes reconciling rental income so much easier.
2. Upload Receipts Regularly
Don’t keep invoices in drawers or shoeboxes.
Upload them to Dext or QBO weekly and stay organised with very little effort.
3. Schedule Quarterly Review Sessions
Because MTD requires quarterly returns, it makes sense to review your numbers on the same cycle.
A 30–45 minute session every three months keeps everything tidy.
Ready to Prepare for MTD for Landlords?
We help landlords get MTD-ready with simple systems and stress-free setup.
✅ Book a landlord-friendly consultation and make MTD simple for your properties.
