What making tax digital actually means for landlords - and where lettings agents fit in

Since the scheme started earlier this year, many landlords have been confused about the new rules, so Beresfords has pulled together some practical tips.

Steven Bond, Managing Director of Residential Lettings at Beresfords Group, said: "The changes may seem daunting, but landlords need to understand the qualifying criteria, the timescales, what information they have to provide and how to submit it. Agents who manage properties on 'fully managed' terms should be able to supply most of the data. They won't have everything, though, and they don't know a landlord's full financial picture, so they can't complete returns on a landlord's behalf.

"Landlords must record all 'qualifying income', meaning total gross income. That can include property income and, where relevant, other self-employment income, plus the related expenses. The big change is that returns are now quarterly instead of annual and have to be sent to HMRC through approved digital software. Once the rules apply to a landlord, HMRC will no longer accept paper records for the properties affected.

"Our team is fully up to date on MTD and can give reliable advice on it. It's a big change to how landlords report to HMRC, but there's nothing to fear. Once it's set up properly, digital reporting could well turn out to be easier and quicker."

Check whether the changes apply to you

Landlords who own property through a company aren't affected. Everyone else, including those with other self-employment income, comes into MTD in three phases based on gross income: over £50,000 from April 2026, over £30,000 from April 2027 and over £20,000 from April 2028.

Quarterly updates and the final declaration

Landlords send four updates a year, each covering a set period, then a final submission that confirms the figures are accurate and adds any allowances or extra income. Keeping records up to date through the year makes this much easier.

Submission periods and deadlines:

6 April to 5 July: file by 7 August
6 April to 5 October: file by 7 November
6 April to 5 January: file by 7 February
6 April to 5 April: file by 7 May

Use HMRC-approved software

HMRC doesn't provide its own software for this, so landlords need to get an approved tool elsewhere. Nexus, by Landlord Studio, is approved and is Beresfords' nominated partner. It links to Beresfords' CRM and automatically pulls in property income and expenses in the right format. Landlords log in, add anything else needed and submit to HMRC.

Deadlines matter. A points-based system starts in April 2027, with financial penalties for repeatedly missed deadlines and late payments.