Checklists

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

This checklist helps landlords manage digital tax obligations efficiently, covering all essential MTD ITSA tasks related to rental income reporting and submissions.
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Making Tax Digital for Income Tax (MTD ITSA) — Landlord Checklist

1. Check if you are required to sign up

☐Confirm you are registered for Self-Assessment. ☐Confirm you receive property income (UK or foreign). ☐Check if your gross property income (before expenses) is:
    • Over £50,000 → Must start from 6 April 2026.
    • Over £30,000 → Must start from 6 April 2027.
☐If your property income is between £20,000–£30,000, MTD will apply later (timeline to be confirmed).

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

Situation What to Do
Jointly owned properties Record your share only. Choose simpler quarterly reporting if you want .
Turnover < £90,000 Simpler categorisation of expenses allowed.
Bridging software users Maintain digital links between spreadsheets and bridging software.
Rent-a-Room Scheme Can claim during quarterly updates or at year-end.
Simplified expenses Optional but must maintain digital records if not using simplifications.

📌 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.

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