MTD for landlords: Your guide to digital tax compliance

Published Friday 23 January 2026

Table of contents

• What is Making Tax Digital for landlords?
• Ensure you're up to speed with Making Tax Digital for Income Tax for landlords
• How will Making Tax Digital for Income Tax affect landlords?
• Establish your MTD offering for landlords
• Marketing your offering to landlords
• Growing your landlord client base with MTD expertise
• FAQs on MTD for landlords

Key takeaways

• Prepare for the phased MTD rollout by identifying which landlord clients will be affected based on income thresholds: £50,000+ from April 2026, £30,000+ from April 2027, and £20,000+ from April 2028.
• Position your practice as a specialist by highlighting your expertise in complex property accounting challenges like multiple property portfolios, joint ownership structures, and inherited properties with unique tax implications.
• Implement targeted marketing strategies including creating dedicated MTD for landlords website content, leveraging existing client networks for referrals, and joining professional programmes like the Xero Partner Programme to increase visibility.
• Recognise that MTD compliance requires landlords to use compatible software for digital record keeping, submit quarterly updates to HMRC, and file annual final declarations, creating year-round recurring revenue opportunities for your practice.

What is Making Tax Digital for landlords?

Making Tax Digital (MTD) is the government's plan to modernise the UK tax system, partly to address the £5 billion tax gap associated with Self Assessment. For landlords, MTD for Income Tax changes how you report earnings to HMRC. Instead of filing a single Self Assessment tax return each year, you'll need to keep digital records of your income and expenses.

Using MTD-compatible software, you’ll send quarterly updates to HM Revenue and Customs (HMRC), followed by a final declaration at the end of the tax year. This gives you a clearer, more up-to-date view of your tax position, making it easier to manage your finances throughout the year.

Ensure you're up to speed with Making Tax Digital for Income Tax for landlords

Understanding MTD for IT requirements helps you identify which landlord clients need your services and positions you as their trusted compliance expert.

Read Xero's comprehensive guide to Making Tax Digital for landlords to master:

• Who is affected by the new rules
• What obligations landlords must meet
• How to advise clients on compliance requirements

How will Making Tax Digital for Income Tax affect landlords?

Making Tax Digital for Income Tax (MTD for Income Tax) requires landlords to use digital software for tax compliance based on their annual income thresholds.

The rollout affects landlords in three phases:

• April 2026: Income over £50,000 annually
• April 2027: Income over £30,000 annually
• April 2028: Income over £20,000 annually

All affected landlords must:

• Use MTD-compatible software for digital record keeping
• Submit quarterly updates to HMRC
• File a Final Declaration annually

Establish your MTD offering for landlords

MTD for Income Tax can help you grow your practice, as more landlords look for support with compliance. HMRC expects around 780,000 people to join MTD from April 2026, with a further 970,000 joining from April 2027. Position yourself as the specialist by focusing on these three key service areas:

Property accounting and bookkeeping expertise

Property accounting expertise sets you apart because landlord finances are more complex than standard sole trader accounts.

Your landlord clients present unique challenges:

• Multiple property portfolios requiring consolidated reporting
• Joint ownership structures with shared expenses and income
• Inherited properties with complex tax implications

Market your specialised knowledge by highlighting:

• Portfolio management experience for multi-property clients
• Complex property tax expertise for unusual situations
• Up-to-date knowledge of UK property income regulations

Educational support

Educational support positions you as the trusted advisor helping landlords navigate MTD confusion and uncertainty.

Target different awareness levels:

• Unaware landlords: Explain that MTD affects property income, not just sole traders
• Partially informed landlords: Answer specific compliance questions, timeline concerns, and cost implications, as HMRC projects an average transitional cost of £350 for some landlords.
• All landlords: Highlight MTD benefits like improved cash flow visibility and automated record keeping

Compliance guidance

Compliance guidance addresses the complex MTD requirements that differ significantly from sole trader rules.

Income threshold complexities:

• Combined income rule: The threshold applies to gross income from rental and sole trader sources combined, meaning both count toward the £50,000 limit.
• Separate MTD registrations: Landlords need both MTD for VAT and MTD for IT if applicable
• Phased implementation: £30,000 threshold from 2027, £20,000 from 2028

Quarterly compliance requirements: These are the main quarterly tasks your landlord clients must complete:

• Software submissions: Replace annual Self Assessment with quarterly digital updates
• Separate reporting: Property income and sole trader businesses need individual quarterly submissions
• Joint property easements: Special digital record keeping rules for shared ownership

Revenue opportunity: Quarterly compliance support transforms annual clients into year-round recurring revenue streams.

Marketing your offering to landlords

Focused marketing helps you turn your MTD expertise into new landlord clients.

Highlight MTD for landlords on your website

Website optimisation establishes your MTD authority and attracts landlords searching for compliance help.

Create a dedicated MTD for landlords page featuring:

• Comprehensive guides answering common MTD questions
• Client testimonials demonstrating your property expertise
• Resource links to official MTD information and tools

Search engine optimisation (SEO) strategy:

• Target landlord-specific MTD queries like "MTD property income requirements"
• Answer common questions about thresholds, software, and compliance deadlines
• Optimize for local searches combining "MTD landlords" with your location

Learn more in Xero’s guide to SEO marketing for accountants.

Tap into your existing landlord clients' network

Using your client network can generate high-quality landlord referrals through simple review and referral campaigns.

Activate your existing landlord clients:

• Request Google My Business reviews highlighting your MTD expertise
• Encourage Trustpilot testimonials focusing on property compliance support
• Ask for direct referrals to other landlords in their network
• Offer referral incentives for successful new client introductions

Find landlords on LinkedIn

LinkedIn networking connects you directly with landlords seeking MTD guidance through targeted engagement.

Optimize your LinkedIn presence:

• Update your profile to highlight MTD for landlords specialization
• Post regular MTD updates demonstrating current knowledge and expertise
• Join landlord groups by searching "landlords UK" and similar terms
• Engage with group discussions by answering MTD questions and sharing insights
• Connect with active landlords who comment on property-related content

Join the Xero Partner Programme

Xero Partner Programme membership increases your visibility to landlords actively searching for MTD-compatible accounting support.

Benefits of Xero Advisor Directory listing:

• Industry-specific searches help landlords find property specialists
• Location-based filtering connects you with local landlord clients
• MTD software integration demonstrates your technical capability
• Verified partner status builds immediate credibility and trust

Growing your landlord client base with MTD expertise

Comprehensive MTD preparation ensures you're ready to serve landlord clients effectively and grow your practice with confidence.

Access Xero's free MTD for IT resource hub for:

• Client segmentation strategies to identify MTD opportunities
• Self Assessment changes affecting landlord compliance
• Implementation guides for smooth client transitions
• Marketing templates to promote your MTD services

Ready to start serving MTD landlord clients with professional accounting software? Try Xero for free and experience the platform that simplifies property income management and compliance reporting.

FAQs on MTD for landlords

Here are answers to some of the most common questions you might have about MTD for landlords.

When exactly do the MTD income thresholds apply to landlords?

The rules start from April 2026 for landlords with a total qualifying income over £50,000. From April 2027, it will apply to those with an income over £30,000. The government is still reviewing the timeline for landlords with income below this level.

Can landlords use existing MTD for VAT software for income tax requirements?

MTD for Income Tax is separate from MTD for VAT. Your landlord clients will need to sign up for MTD for Income Tax specifically, even if they’re already compliant with MTD for VAT. Some software, like Xero, can support both obligations from one platform.

What happens if a landlord's income drops below the threshold after signing up?

Once a landlord has signed up for MTD for Income Tax, they must continue to follow its rules. This applies even if their qualifying income falls below the mandatory threshold in a future tax year, as MTD requirements only cease to apply when income is below the threshold for three successive years.

How do MTD rules work for jointly owned properties?

For jointly owned properties, while easements exist, the default rule is that each individual will be required to keep digital records and submit updates for their share of income. However, all owners remain responsible for the accuracy of the information. It's best to review the specific guidance for each client's situation.

What's the difference between MTD requirements for landlords versus sole traders?

The core requirements (digital records, quarterly updates, and a final declaration) are the same for both. The main difference is that income from property and income from a trade are treated as separate businesses. A client who is both a landlord and a sole trader must submit separate quarterly updates for each income source.