Simplifying MTD IT for landlords and property income

From April 2026, HMRC’s Making Tax Digital for Income Tax (MTD IT) rules will apply to landlords and individuals earning property income. If your combined gross property (along with any self-employment) income is above £50,000 a year, you’ll need to change how you report tax to HMRC.

This threshold will then reduce to £30,000 in April 2027, and it’s expected to fall further to £20,000 in 2028.
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TaxNav eases the process

At TaxNav, we’re helping landlords and property income earners prepare for these changes. Our HMRC-recognised software, combined with our support, makes it easier to maintain digital records, submit the required quarterly updates, and stay fully compliant with HMRC’s MTD IT reporting requirements.

For example, with TaxNav you don’t have to give up the way you already record your income and expenses. You can continue using your own spreadsheet (or use our ready-made templates) and simply link it via the TaxNav app. The totals are automatically imported into the software and sent securely to HMRC, keeping you fully compliant with MTD IT and with minimum fuss.

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What MTD IT involves for landlords and property income

If you receive property income (and any other self-employment income) above the mandatory threshold, MTD IT will change how you manage your tax reporting. Instead of filing one annual Self Assessment, you’ll need to:

  • Keep digital records of property income and expenses in HMRC-recognised software
  • Send quarterly updates of your year-to-date income and expense costs to HMRC
  • Submit a final declaration after the tax year ends

Missing a deadline could lead to HMRC penalties, so preparing early is essential.

Who must follow MTD IT

MTD for Income Tax applies to landlords and individuals with property income that exceeds the HMRC’s threshold. This includes:

  • Landlords with multiple rental properties
  • People letting out a single property, for example, an inherited one
  • Holiday let, rent a room and Airbnb hosts with property income (along with any self-employed income) above the threshold
  • Those with foreign property income
  • Those with both self-employed and property income
  • Individuals who are employed but also receive property income
  • Individuals with jointly owned property – each person must report their share separately

Why you should prepare for MTD IT now

Although April 2026 may seem a way off, the changes are significant. Starting early helps you:

  • Confirm if your gross property income will trigger MTD rules
  • Review your record-keeping and try HMRC-approved software
  • Get familiar with quarterly year-to-date reporting before it becomes mandatory

How TaxNav supports landlords and property income earners

At TaxNav, we’re already part of HMRC’s MTD IT pilot programme. Our software and support have been designed to handle the complexities of property income - whether that’s from a single property, furnished holiday lets, overseas rentals, jointly owned properties, or a comprehensive portfolio.

Here’s how we can make the transition to Making Tax Digital for Income Tax easier and less stressful.

1_Stay compliant with confidence

We’re HMRC-recognised and fully compliant, giving you peace of mind. Our automatic reminders help you never miss a quarterly deadline, and you’ll gain a clear view of your estimated year-end tax bill, helping you plan ahead.

2_Record and report with ease

Our simple online platform lets you maintain digital records of your rental and property income and expenses from your phone or laptop.
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You also gain Excel templates to track different property income streams and expenses. Alternatively, our bridging software lets you continue using your spreadsheets while still meeting HMRC’s MTD IT filing requirements.

3_Simple, secure and cost-effective

Rest assured, TaxNav keeps things safe and secure with encrypted data, so your information stays private. Also:

  • It’s an easy-to-use online platform, with no downloads or complicated setup
  • Our step-by-step guidance simplifies reporting
  • We’re cost-effective compared with larger bookkeeping packages

Whether you’re letting a single property, managing a portfolio, or receiving income from multiple sources, TaxNav supports the complexities of property income and makes MTD IT compliance straightforward.

Start early and stay ahead

MTD IT becomes mandatory for many landlords in April 2026, with more expected to follow in the years after. Getting started now means you’ll be ahead of the curve - with no surprises or last-minute panic. To learn more about how MTD IT will impact landlords, read our blog here.

If you're ready to try simple, affordable software built around how you actually work, TaxNav is ready when you are.

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