MTD Information
What is Making Tax Digital for Income Tax (MTD for IT)?
MTD for IT is the requirement to maintain full electronic records and submit required financial information covering income and expenditure to HMRC every quarter.
It is a requirement that business (including property) records be maintained and submitted using suitable software.
This initiative should mean that MTD submissions are very simple and straightforward, with little additional overhead beyond keeping good records.
When will MTD affect Landlords?
Effective from April 2026, if you have £50,000 or more of gross income (revenue before expenses, not profit) across your properties - also including any income from sole trader businesses - you'll be required to follow the Making Tax Digital for Income Tax and Self Assessment rules.
April 2027 will see more landlords included, as the boundary reduces to £30,000 or more of income.
April 2028 the boundary reduces to £20,000 or more of income.
MTD also covers other types of tax, such as VAT.
As a landlord it's most likely that “Making Tax Digital for Income Tax” (MTD for IT) will be the first to affect you.
If your property is owned by a Limited Company, then MTD is not applicable.
MTD only affects individually owned property and Sole Traders.
What do Landlords need to do for MTD?
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Maintain electronic records.
Financial transactions must be tracked individually so that all totals later submitted to HMRC have a full breakdown available. Simply use PaTMa in the normal way to keep all the property records you need.
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Make quarterly submissions (for property).
PaTMa will email you a reminder at the end of each tax quarter. All you'll need to do is check your records are complete, review the totals and click a button to send the details to HMRC.
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Complete your self assessment tax return via MTD software.
This process is similar to an existing self assessment submission - it brings together all of your personal income related information for the year. Your existing MTD submitted records will be included automatically and other details will need to be entered manually, as they currently are.
How does PaTMa help Landlords with MTD?
PaTMa helps you to keep all the accounting records required for MTD, in a single place alongside all your other property management records.
You'll only need to enter details once in the existing landlord-friendly PaTMa interface, using words you understand as a landlord. PaTMa lets you think like a landlord and keep all your accounting records automatically, without needing to understand accounting terms.
Does MTD affect rental property held in a Limited Company?
Other parts of MTD may affect limited companies that hold and rent property.
However, MTD for Income Tax does not directly affect limited company held property.
Where to find government information on MTD
You can find the official Government information on MTD for IT, and current eligibility details here.
Want to know more?
If you’re keen to know even more about MTD changes then why not dive into our recent blog post about MTD? If you prefer video, we also recently did a webinar on the topic!
Ready to get setup for MTD in PaTMa? Then head over to this section of our website. for more information.