MTD for income tax self-assessment went live from April 2026 for self-employed people and landlords with qualifying income over £50,000.

That threshold is based on gross income, not profit – an important distinction that some landlords could miss.

So, a landlord with rental income above £50,000 before expenses may already fall within the rules, even if their actual profit is much lower than that.

Your clients should have already signed up and created digital records by April this year. If not, that’s their first step. And the first quarterly reporting deadline is 7 August 2026.

The quarterly updates will include digital records for their self-employment and property income plus expenses from the previous three months, as well as records already created since the start of the tax year. If there has been no income or expenses during the update period, a quarterly update must still be sent.

After the first deadline, they need to complete quarterly submissions throughout the year (in November, February and May), before a final declaration after the end of the tax year on 31 January 2028.

They still need to submit a self-assessment tax return in the usual way for 2025-26 (before MTD kicked in) by 31 January 2027.

MTD applies to landlords and self-employed individuals who submit tax returns through self-assessment and meet the income thresholds.

However, there are some areas of confusion.

• The rules apply to income from property and self-employment combined, rather than separately.
• PAYE income does not count towards the threshold.
• Rental income from a jointly owned property is usually split according to ownership share when calculating qualifying income.
• Limited companies are currently excluded from MTD for income tax because companies already report through corporation tax rules, so landlords operating only through limited company structures may not be affected, while those with personally held properties could be.

The good news is that landlords do not suddenly need to become tax experts overnight. They just need to get organised. They can’t just pull together their accounts once a year before their tax return anymore.

That sort of ‘shoebox accounting’ is gone. Landlords under the MTD regime need to keep digital records using compatible software, submit quarterly income and expense updates and maintain up-to-date information throughout the year.

That could mean a big change in how some of your clients manage their finances day to day.

It might also be worth landlords reviewing how their properties and income are structured, especially if they have complicated ownership arrangements or portfolios that sit across both personal and limited company structures.

MTD might not be the biggest challenge landlords are facing this year, but it all adds to the substantial admin pile.

Your clients are already dealing with the Renters’ Rights Act, grappling with future EPC proposals, as well as managing higher borrowing costs than they’d expected this year.

MTD is another sign of how the sector is becoming more professional, visible and structured. Landlords need to stay organised, keep on top of their finances and plan ahead more carefully than they may have done in the past.

Brokers are the right professionals to help with that. Clients don’t expect you to explain tax rules in detail, but they want to be kept informed, helped to plan ahead and signposted towards the right support, such as the dedicated MTD government website.

They might want to think more carefully whether to raise capital for future improvements next time they refinance or consider how ownership structures affect their plans.

Lenders also have a role to play in supporting you and your clients. At BM Solutions, we know that landlords and brokers want consistency of underwriting, straightforward processes and trusted information. And we’re focused on helping you to help your clients.

MTD may not feel as dramatic as some of the wider rental reforms arriving this year, but for many landlords, it still represents a big shift.

The first quarterly filing deadline in August is fast approaching. Those who are prepared will find the transition smoother than those who leave it until the last minute.

Remember that, even if your clients aren’t in the MTD system now, they could be soon. From April 2027, the threshold reduces to £30,000, and from April 2028, it reduces again to £20,000.

It makes sense to speak to all of your buy-to-let clients to make sure they’re one step ahead of these, and all the other changes they face in the next few years.

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