Making Tax Digital for Landlords - What Leeds Property Owners Need to Know in 2026

Published: 24/02/2026

From April 2026, HMRC will introduce new rules under its Making Tax Digital programme. Many landlords across the UK will be affected.
If you receive rental income from property in Leeds or elsewhere, these changes may apply to you. Below is a clear guide to what is happening, who it impacts, and how to prepare.

What Is Making Tax Digital

Making Tax Digital, known as MTD, is HMRC plan to modernise the UK tax system.
Instead of submitting one annual Self Assessment tax return, landlords will be required to keep digital records, submit quarterly updates to HMRC using approved software, and complete a final year end declaration.

Who Will It Apply To

MTD for Income Tax will apply to landlords and self employed individuals whose total annual income exceeds certain thresholds.

• From April 2026 Income over £50,000 pounds
• From April 2027 Income over £30,000 pounds
• From April 2028 expected Income over £20,000 pounds
• The threshold relates to total gross income, not profit. If your combined rental or self employed income exceeds these figures, you will need to comply from the relevant date.
• What Landlords Will Need To Do
• Keep digital records of all rental income and allowable expenses
• Use HMRC approved accounting software
• Submit quarterly income and expense summaries
• Submit a final declaration at the end of the tax year
  
  

HMRC Approved Software for Making Tax Digital for Landlords

Popular Software to look at includes the following:
 

1. EasyBooks – Basic MTD digital record-keeping and submission tool 
2. EasyInvoice – Simple record-keeping with digital submissions 
3. Gbooks MTD for Income Tax – MTD digital reporting tool 
4. Pandle – Cloud bookkeeping with MTD compliance 
5. Sage 50cloud Accounts / Sage Individual – Well-known accounting platform with MTD support 
6. Taxfix – Personal tax app with MTD-enabled features 

Landlord-focused / property-friendly options:

Notes on Choosing Software

• HMRC uses a compatibility register so any software listed on GOV.UK’s finder tool has been recognised as capable of sending digital updates and preserving records. 
• Some options are free or low-cost but may offer limited features; others are full accounting suites that also help with bank feeds, multi-income reporting, and larger portfolios. 
• If you already use cloud accounting (e.g., Xero or QuickBooks), check that your edition supports MTD for Income Tax and not just VAT.

How To Prepare Now

• Review how you currently store financial records
• Speak with your accountant about MTD compatible software
• Check your income level to confirm when you will be affected
• Ensure your letting agent provides clear digital reporting

What We Are Advising Our Landlords

We are advising landlords to treat MTD as an opportunity to improve financial visibility and organisation. Quarterly reporting can mean cleaner record keeping, more up to date performance tracking, fewer surprises at tax year end, and reduced risk of HMRC penalties.

How We Can Help

We support landlords with clear digital income statements, structured expense tracking, organised year end reporting, and guidance ahead of MTD deadlines.