MTD for landlords: what Brighton property owners need to do

By Accounting Solution · June 2026 · 7 min read

Making Tax Digital for Income Tax (MTD for IT) is now live. If you own rental property in Brighton and your qualifying income exceeds £50,000, you are legally required to comply. Here is what that means in practice.

Who does MTD affect as a landlord?

From April 2026, landlords with qualifying income — that is, income from property and/or self-employment — above £50,000 must keep digital records and submit quarterly updates to HMRC. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028.

Qualifying income does not include your employment salary, dividends, savings interest or pension income. So if you are a director who also owns a rental property, only the rental income counts toward the threshold — not your salary or dividends from your company.

If you own properties jointly with a spouse or partner, each person's share of the rental income is assessed separately against their individual threshold.

What changes for Brighton landlords under MTD?

Previously, you reported your property income once a year via Self Assessment. Under MTD, that changes significantly:

• Digital records: You must keep records in MTD-compatible software — spreadsheets alone are no longer sufficient unless used with a bridging tool
• Quarterly updates: Four submissions per year to HMRC showing your income and expenses for each quarter
• End of period statement: An annual summary confirming your figures and making any adjustments
• Final declaration: Replaces your Self Assessment tax return, confirming your total income from all sources

The quarterly updates are not tax returns — they are income and expense summaries. You do not pay tax quarterly. Your tax liability is still calculated and paid in the usual way (31 January and 31 July).

What about landlords with multiple properties?

Each property is treated as part of a single UK property business. You do not submit separately for each property — you combine all rental income and expenses and submit them together as one quarterly update. This makes the process more manageable than it might initially sound.

The exception is furnished holiday lettings (FHLs), which were previously treated differently from standard residential lets. From April 2025, the FHL regime was abolished, so all UK property is now treated under the same rules.

What software do Brighton landlords need?

You need HMRC-recognised MTD-compatible software. The main options are Xero, QuickBooks, FreeAgent and a range of specialist landlord platforms. Most will connect directly to HMRC and handle your quarterly submissions automatically once your records are up to date.

At Accounting Solution we set up and manage MTD software for landlord clients as part of our standard service. You do not need to deal with HMRC directly — we handle the submissions on your behalf.

What if I am below the £50,000 threshold?

You do not need to join MTD yet, but the thresholds are dropping. If your rental income is between £30,000 and £50,000, you will be in scope from April 2027. Below £30,000, from April 2028. It is worth getting your records digital now rather than scrambling when the deadline arrives.

Penalties for non-compliance

HMRC is introducing a new points-based penalty system for MTD. Each missed quarterly submission earns a point. Accumulate enough points and a financial penalty follows. The regime is designed to be proportionate for occasional errors but firm on persistent non-compliance.

Does MTD affect what tax I pay?

No. MTD changes how and when you report, not how much tax you owe. Your allowable expenses (mortgage interest relief at 20%, letting agent fees, repairs and maintenance, insurance, service charges) remain the same. Section 24 restrictions on mortgage interest relief are unchanged.