Making Tax Digital (MTD) will require certain taxpayers (sole traders and landlords) to maintain digital records and submit quarterly submissions of their income and expenses to HMRC, followed by a final end of year declaration. The final declaration will effectively replace the Self-Assessment Tax Return.
Does this affect me?
From 6 April 2026, individuals with a combined annual income from self-employment and/or gross property income exceeding £50,000 (before any deduction of expenses) will need to comply. If your Tax Return for the year ended 5 April 2025 shows an income exceeding £50,000 HMRC will tell you that you must start using MTD.
From 6 April 2027, this threshold reduces to £30,000 and will be based on the income declared on the 2025/26 Tax Return.
From 6 April 2028, this threshold reduces to £20,000 and will be based on the income declared on the 2026/27 Tax Return.
What if my property is jointly owned?
Each co-owner’s share is tested against the threshold. If the share exceeds the threshold, the co-owner will be required to comply.
What do I need to do?
Give yourself enough time to plan how you are going to meet the new requirements.
You will need to choose suitable software to keep digital records which will enable you to make the quarterly submissions to HMRC.
Submit quarterly reports to HMRC to declare the income and expenses for the period. This will be cumulative, and the standard periods and due dates are as follows:
| Period | Filing Date |
|---|---|
| 6 April to 5 July | 7 August |
| 6 April to 5 October | 7 November |
| 6 April to 5 January | 7 February |
| 6 April to 5 April | 7 May |
Remember you will still be required to file your Tax Return/Final Declaration.
How Can Hobbs Parker Lettings Help?
You will already be receiving your monthly statements, however we can send these directly to your bookkeeper/accountant making this one less admin burden for you each month.
Kendall Richardson (part of the Hobbs Parker Group) who specialise in bookkeeping will be happy to discuss their MTD package which includes keeping digital records and making the quarterly submissions throughout the year, and then handing over to your annual accountant for the final submission.
If you think this might apply to you and want to discuss in more detail, please do get in touch and we will be happy to talk through your options.
Please contact Clare Richardson on clarerichardson@hobbsparker.co.uk.