If you are a residential landlord, you need to be aware that from April 2027 the HMRC threshold requiring you to be set up for Making Tax Digital will be £30,000 or above.
In 2026 the UK Government introduced a new tax initiative, called Making Tax Digital, especially designed for people earning annual income from property and/or self-employment.
Making Tax Digital didn’t apply to everyone immediately because it is being introduced in phases:
- In 2026: Landlords earning over £50,000
- From April 2027: Landlords earning over £30,000
- From April 2028: Landlords earning over £20,000
This mean’s for a Landlord with just one property being rented for £2,500 p.c.m. they will need to be set up for Making Tax Digital by April next year.
Once set up Landlords will need to submit quarterly updates, and most importantly they will have to use ‘compatible software’ (HMRC approved) to submit their filings.
Established nearly 40 years, McCarthy Holden is a trusted and dependable letting agency so please get in touch if you are a landlord seeking support and advice.
For additional information on “compatible software” please see the link below.
Choose the right software for Making Tax Digital for Income Tax – GOV.UK
At McCarthy Holden we can help landlords source ‘compatible software’ and provide general guidance to help keep our landlords compliant. Contact our experienced property experts on 01252 622550.
