Making Tax Digital from April 2026
Laura Goode
Apr, 01 2026From 6 April 2026, Making Tax Digital for Income Tax stops being a future issue and becomes a live compliance obligation for many landlords. In recent months Ceres Bookkeeping team has been advising clients on how to best prepare for Making Tax Digital (MTD).
If your gross qualifying income (rental income and self-employment income before expenses) exceeds £50,000, your tax reporting is about to change fundamentally.
Based on HMRC guidance, property income is qualifying income for MTD for income Tax includes:
- Residential rental income
- Commercial property income
- Agricultural rental income where land or buildings are let
What will be required:
- Quarterly digital updates to HMRC
- Mandatory digital record-keeping
- A final year-end declaration replacing Self Assessment
What’s catching many landlords out?
- The threshold is gross income, not profit
- Joint owners are assessed individually
- One spouse/co-owner may be inside MTD while the other is not
- For the time being Trusts and companies are outside MTD – but individuals are not
Our bookkeeping team are helping landlords caught by the scope of the rules this April by ensuring landlords have the relevant information held in digital format at their fingertips, such as:
- rental income figures for all properties.
- having suitable bookkeeping software to allow for quarterly returns to be made effortlessly.
- Putting clear processes in place for entering information on bookkeeping systems in a timely manner.
MTD isn’t about paying more tax. It’s about how and how often HMRC expects information.
If you manage property, now is the moment to understand where you sit.
The rules around income classification can be complex, particularly where property income and trading activities sit alongside each other. You should always speak with your accountant or tax adviser to confirm whether your income falls within the scope of Making Tax Digital and how the rules apply to your specific circumstances.
Get in touch
Ceres Property’s land consultancy team is here to support you. We work closely with landowners to provide clear, practical advice on everything from land use and development potential to long-term strategic planning, helping you make informed decisions with confidence in a changing environment. Get in touch today land@ceresproperty.co.uk.