A lettings agency has set out the role that it and agents generally can play in Making Tax Digital (MTD).
As of April 2026, unincorporated landlords with a gross qualifying income over £50,000 based on the 2024-2025 tax year, will be required to keep digital records and submit quarterly updates to HMRC.
This income threshold will gradually decrease over the next two years: £30,000 in April 2027, and £20,000 in April 2028, replacing the traditional annual Self-Assessment system with a more structured, digital process.
Following the introduction of the scheme earlier this year, landlords have faced confusion around the new legislation and requirements and the lettings experts at Beresfords have compiled advice tips to help navigate through this transition.
Lettings director Steven Bond says: “While the changes may be daunting, landlords must ensure they fully understand the qualifying criteria, relevant timescales, what information they need to provide and how to submit it to HMRC.
“Letting agents who work with their landlords on ‘fully managed’ terms should be able to provide most of the data required, but they will not have access to everything, nor do they retain a detailed knowledge of a landlord’s entire financial picture, and for these reasons are unable to complete returns on behalf of their landlords.
“When it comes to compiling records, landlords must document all ‘qualifying income’ which means the total gross income generated. This may be from property investments and other forms of self-employment where relevant, plus related expenditure.
“The big change is that returns must be completed quarterly instead of once a year and be submitted to HMRC via pre-approved digital software. From the relevant timescales of implementation, paper-based information will no longer be accepted by HMRC for those landlords and related properties affected.
“Our team are fully up to date in terms of Making Tax Digital and equipped to provide reliable advice linked to MTD. Although it represents a significant change in terms of how a landlords submits relevant information to HMRC there is nothing to fear. Once set up properly it could be argued that digital reporting will in fact prove to be much easier and time efficient for landlords’’.
Hereford’s’ guidance to landlord clients
Incorporated landlords (Properties owned in a company name) fall outside of these changes so their position remains unchanged. Affected landlords, and/or those with other forms of income from self-employment will qualify for MTD in three phases based on the level of gross income being declared as follows: April 2026 – income over £50,000, April 2027 – income over £30,000 and 2028 – income over £20,000.
Quarterly reports and annual declaration
Landlords are required to submit four submissions each year covering specific periods, followed by a final submission confirming accuracy, including allowances or additional income. Using tools to update financial records throughout the year will help make this process less daunting.
Submission periods & filing deadlines:
6 April to 5 July- Filing deadline 7 August
6 April to 5 October – Filing deadline 7 November
6 April to 5 January – Filing deadline 7 February
6 April to 5 April – Filing deadline 7 May
A final submission confirms accuracy and includes allowances or additional income.
Use a HMRC-approved reporting software
As HMRC does not provide financial reporting software for this purpose, landlords must secure an approved tool elsewhere. Nexus, by Landlord Studio, is an approved solution and Beresfords’ nominated partner.
Their software integrates with Beresfords own CRM and automatically transfers related property income and expenses into a suitable format. Landlords then simply log in, add any additional information and submit to HMRC.
Meeting deadlines is vital, as a points-based system applies from April 2027, with financial penalties for repeated deadlines and late payments.
