Making Tax Digital for Income Tax (MTD ITSA) – Landlord Checklist

2. Calculate your qualifying income

☐Include:

• Gross rent from UK property (before expenses).

☐Exclude:

• Dividends, employment income, partnership income (unless disguised management fees).
• Foreign property income if you are a non-UK resident.

3. Check your start date

☐If £50,001+ gross property income (based on 2024–2025 tax return) → Start from 6 April 2026.

☐If £30,001–£50,000 (based on 2025–2026 tax return) → Start from 6 April 2027.

☐Wait for HMRC’s letter after submitting your Self-Assessment confirming when to start.

4. Choose compatible software

☐Find software that:

• Creates and stores digital records of property income and expenses.
• Sends quarterly updates to HMRC.
• Submit your final tax return.

☐Check if software supports jointly owned properties.

☐If using a spreadsheet, arrange bridging software.

☐If your accounting period is 1 April–31 March, ensure the software supports calendar update periods.

5. Sign up for Making Tax Digital for Income Tax

☐Confirm your:

• Personal details are correct with HMRC.
• You have no outstanding tax liabilities.

☐Gather information:

• Date you started receiving property income.
• Accounting method (cash basis or traditional).

☐If you own multiple properties:

• UK properties = one UK property business.
• Foreign properties = one foreign property business.

☐Sign up yourself or via an agent.

6. Create and maintain digital records

☐Create digital records for each property business:

• Amount of rental income received.
• Expenses (repairs, insurance, maintenance, mortgage interest, etc.).

☐For jointly owned properties:

• Record your share of income and expenses.
• Optionally simplify quarterly updates by:
  • Recording just total income and deferring expenses till year-end.

☐Keep original invoices, receipts, or scanned copies.

7. Send quarterly updates to HMRC

☐Send quarterly updates covering:

• 6 April–5 July → by 7 August
• 6 April–5 October → by 7 November
• 6 April–5 January → by 7 February
• 6 April–5 April → by 7 May

☐If using calendar periods (1 April–30 June etc.), select it in your software.

☐Send nil returns if there’s no income/expenses in a quarter.

8. Adjust at year-end

☐After your fourth update:

• Adjust for disallowable expenses (e.g., private portions of mortgage, utilities).
• Apply tax reliefs (e.g., Rent a Room relief if applicable).
• Apply accounting adjustments (prepayments, accruals).

☐If using 1 April–31 March accounting, adjust to include income/expenses from 1–5 April.

9. Finalise and submit your tax return

☐Complete your Income Tax finalisation via your MTD-compatible software.

☐Declare all other taxable income (dividends, bank interest, etc.).

☐Submit by 31 January after the tax year ends.

☐Confirm your declaration that the tax return is correct and complete.

10. Stay compliant afterward

☐Keep your digital records safely for at least 5 years after 31 January deadline.

☐Pay any Self-Assessment bill by the deadlines (31 January and 31 July for payments on account).

☐Notify HMRC online if:

• You add or cease a rental property business.
• You stop being a landlord.

⭐ Important Notes for Landlords

📌 Summary Flow for Landlords

1. Check if you meet the MTD threshold.
2. Calculate gross property income.
3. Get MTD-compatible software.
4. Sign up for MTD via HMRC.
5. Keep digital records for property income/expenses.
6. Send quarterly updates.
7. Make year-end adjustments.
8. Submit final tax return via software.
9. Keep records for 5 years.
10. Stay on top of payments and changes.