From 6 April 2026, Making Tax Digital for Income Tax (MTD for ITSA) becomes mandatory for UK landlords and sole traders earning over £50,000 per year. This is one of the biggest changes to the UK tax system in a generation, affecting an estimated 864,000 people across the country. If you are a landlord, here is everything you need to know -- and how Cleemo can help you stay compliant.
What Is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is HMRC's programme to modernise the UK tax system. Under the MTD for Income Tax rules, landlords registered for Self Assessment will need to:
- Keep digital records of all rental income and allowable expenses using MTD-compatible software
- Submit quarterly updates to HMRC summarising income and expenses for each period
- File a final declaration at the end of the tax year through their software, replacing the traditional Self Assessment tax return
The aim is to bring tax reporting closer to real time, spread the workload more evenly throughout the year, and help landlords stay on top of their finances.
Who Needs to Comply and When?
MTD for Income Tax is being rolled out in phases based on your qualifying income (the combined total of your self-employment and property income before expenses):
| Tax Year | Income Threshold | Start Date | |----------|-----------------|------------| | 2026-27 | Over £50,000 | 6 April 2026 | | 2027-28 | Over £30,000 | 6 April 2027 | | 2028-29 | Over £20,000 | 6 April 2028 |
This applies to individual landlords registered for Self Assessment. Companies and partnerships are not yet included, though partnerships are expected to follow in the future.
If you are a landlord with property income above £50,000, you must begin keeping digital records and submitting quarterly updates from 6 April 2026.
Quarterly Update Deadlines for 2026-27
For the first year of MTD (the 2026-27 tax year), the quarterly submission deadlines are:
| Quarter | Period | Deadline | |---------|--------|----------| | Q1 | 6 April - 5 July 2026 | 7 August 2026 | | Q2 | 6 July - 5 October 2026 | 7 November 2026 | | Q3 | 6 October - 5 January 2027 | 7 February 2027 | | Q4 | 6 January - 5 April 2027 | 7 May 2027 |
Your annual Self Assessment return (final declaration) for 2026-27 is then due by 31 January 2028, but it will be submitted through your MTD software using the data from your quarterly updates.
What Records Must You Keep Digitally?
Under MTD requirements, landlords must maintain digital records of:
- Rental income: all rent received from tenants, including any advance payments
- Allowable expenses: mortgage interest, letting agent fees, repairs and maintenance, insurance, ground rent, service charges, and other deductible costs
- Claims for allowances or reliefs: such as the property income allowance or replacement of domestic items relief
If you have both self-employment and property income, you must keep separate records for each and send separate quarterly updates for each type of income.
Penalties and the Grace Period
HMRC has introduced a penalty points system for late submissions. However, landlords joining MTD in April 2026 will benefit from a 12-month grace period during which no penalty points will be issued for late quarterly updates.
- You receive one penalty point for each late quarterly submission
- A £200 fine is only triggered once you accumulate four penalty points
- Occasional slip-ups will not result in immediate fines
Landlords who genuinely cannot use digital tools can apply for an exemption from MTD requirements, though they must still file Self Assessment returns.
How Cleemo Helps You Meet MTD Requirements
Cleemo is a property management platform built specifically for landlords. It is designed to make MTD compliance effortless by providing the tools you need in one place.
Digital Rent and Expense Tracking
Cleemo automatically tracks all your rental income and expenses digitally. Every rent payment, maintenance cost, insurance premium, and service charge is recorded and categorised -- giving you the digital records MTD requires, without the spreadsheet headaches.
Organised Document Storage
Store all your property documents -- tenancy agreements, invoices, receipts, insurance certificates -- securely in Cleemo's document management system. When HMRC asks for supporting evidence, everything is organised and ready.
Cash Flow Per Property
See exactly how each property is performing with Cleemo's per-property cash flow dashboard. Track income versus expenses in real time, so your quarterly updates are always based on accurate, up-to-date figures.
AI Assistant Clea
Clea, Cleemo's built-in AI assistant, helps you navigate tax obligations and property management questions. Whether you need guidance on allowable expenses or help understanding MTD deadlines, Clea is there to help.
HMRC Integration for MTD
Cleemo is building direct HMRC integration through a secure OAuth connection. When fully rolled out, this will let you:
- Connect your HMRC account through the official Government Gateway
- View your quarterly obligations and deadlines inside Cleemo
- Submit quarterly updates to HMRC from your Cleemo dashboard
- Track submission status so you always know where you stand
The goal is simple: no more switching between different tools or manually entering figures. Cleemo aggregates your recorded income and expenses and formats them for HMRC submission.
Getting Ready: A Checklist for Landlords
With MTD now live, here is what you should do:
- Check if you qualify: If your property income exceeds £50,000 for the 2024-25 tax year, you need to comply from 6 April 2026
- Choose compatible software: You need software that can keep digital records and submit quarterly updates. Cleemo already handles digital record-keeping and is working towards full HMRC integration.
- Start keeping digital records now: The sooner you move away from paper and spreadsheets, the easier the transition will be
- Sign up for HMRC's MTD service: You can sign up through GOV.UK once you have compatible software in place
- Connect your software to HMRC: In Cleemo, this takes just a few clicks through the HMRC OAuth flow
Frequently Asked Questions
Do I need MTD if I only have one rental property? It depends on your income, not the number of properties. If your total qualifying income from self-employment and property exceeds £50,000, you must comply from April 2026.
What if my property income is below £50,000? You are not required to use MTD yet, but the threshold drops to £30,000 in April 2027 and £20,000 in April 2028. It is worth preparing early.
Does MTD replace Self Assessment? Not entirely. You still submit a final declaration at the end of the tax year (equivalent to your Self Assessment return), but you do it through your MTD software using the data from your quarterly updates. The deadline remains 31 January.
What happens if I miss a quarterly deadline? During the first 12 months, there are no penalties for late quarterly updates. After that, you receive penalty points, and a £200 fine is applied once you accumulate four points.
Can I use Cleemo if I have properties in different parts of the UK? Yes. Cleemo supports multiple properties and workspaces, so you can manage your entire portfolio in one place regardless of location.
Is Cleemo free to use? Cleemo offers a free plan that includes core property management features. You can sign up and start organising your rental finances today.
Start Your MTD Journey with Cleemo
Making Tax Digital does not have to be complicated. With Cleemo, you get a purpose-built property management platform that handles digital record-keeping, expense tracking, document storage, and HMRC submissions all in one place.
Join landlords across the UK and Europe who are using Cleemo to manage their properties more efficiently.