The way landlords report their income and expenditure is changing. From April 2026, Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will come into effect as part of the UK government’s drive to modernise the tax system.
But with the deadline fast approaching, many landlords are still unclear about what this means for them – and what action they need to take.
What is Making Tax Digital?
Making Tax Digital is the government’s plan to simplify and modernise the way tax is reported. For landlords, it means:
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Using HMRC-approved digital software.
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Submitting quarterly updates instead of one annual tax return.
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Completing a final declaration at the end of the year that includes non-business income and claims for allowances or reliefs.
Eventually, all sole-trader landlords earning more than £20,000 a year (from property and/or self-employment income) will need to comply.
Key dates landlords need to know
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April 2026 – Landlords with an annual property income of £50,000+ (based on the 2024–25 tax year) must join MTD.
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April 2027 – Extended to landlords earning £30,000+ annually.
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April 2028 – Extended again to those earning £20,000+ annually.
👉 Limited company landlords are not affected and will continue to pay corporation tax as usual.
Why preparation matters
Elsby & Co, a Rushden-based accountancy firm, has been working with letting agents across the region and discovered that many landlords either haven’t heard of Making Tax Digital or don’t know how it will impact them.
Senior Client Manager Carina Benzie explained:
“Through our discussions with letting agents, we’ve learned that many landlords have little awareness of this change or, if they’re aware, they’re unsure what it means for them. To support local businesses, we’re offering free advice and education to landlords so they can get to grips with this new system and avoid penalties for late tax filing.”
Supporting landlords through the transition
Elsby & Co is working closely with letting agents, including Prime Choice Letting & Estate Agents in Rushden, to raise awareness and offer practical support.
Prime Choice Director Amaniel Ghile added:
“Making Tax Digital will be one of the biggest changes landlords have faced in recent years. By partnering with Elsby & Co, we can give our landlords confidence that they’re fully compliant, their records are accurate, and they have clear guidance at every stage.”
Free support for landlords
To help landlords prepare, Elsby & Co is:
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Attending local landlord events.
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Providing free educational flyers through letting agents.
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Offering access to a free pre-recorded webinar on Making Tax Digital, available this autumn.
Carina Benzie said:
“By working with us now, landlords can ensure they stay compliant and thrive in the digital age. The earlier they’re prepared for the changes, the smoother the transition will be.”
Next steps for landlords
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Check if you’ll be affected. This depends on your total property and self-employment income.
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Submit your Self-Assessment early. This will help determine if you fall within the MTD remit.
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Choose the right software. Elsby’s expert team can help select and set up the right MTD-compatible accounting software.
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Get trained and supported. Don’t wait until the deadline – starting early means no surprises.
📞 Want to learn more? Contact Elsby & Co on 0330 053 9189, email help@elsbyandco.co.uk, or visit www.elsbyandco.co.uk.
Making Tax Digital is coming – the time to prepare is now. With Elsby & Co’s support, landlords can face the changes with confidence and peace of mind.