Making Tax Digital for landlords
Making Tax Digital for Income Tax started on 6 April 2026. It applies if your rental income and any self-employed income add up to more than £50,000 before costs. The limit drops to £30,000 from April 2027 and £20,000 from April 2028. If you’re caught, you need to keep digital records and send HMRC an update every quarter, plus a final declaration after the year end. We set you up in Xero and send the updates for you.
Getting the tax right
We prepare your Self Assessment return and make sure you claim everything you’re entitled to: letting agent fees, repairs, insurance, service charges, replacing furniture in furnished lets, and our fees. Mortgage interest gets basic-rate tax relief rather than being deducted from your rent, and we make sure that’s claimed correctly.
Jointly owned and company property
If you own with a partner, how the income is split can make a real difference. We’ll also tell you honestly whether a limited company would save you tax, bearing in mind the costs of moving property into one.
What’s included
- Self Assessment tax returns for rental income
- Making Tax Digital set-up and quarterly updates
- Accounts for property companies
- Advice on joint ownership, companies and selling
- Capital gains tax returns when you sell
Common questions
Does Making Tax Digital apply to me?
It does if your rental income plus any self-employed income was over £50,000 before costs. The limit falls to £30,000 from April 2027 and £20,000 from April 2028.
Can I claim my mortgage interest?
You get tax relief at the basic rate on your mortgage interest, rather than deducting it from your rental income. We include it on your return.
Should I put my properties in a company?
It can save tax for some landlords, but moving existing properties can cost stamp duty land tax and capital gains tax. We’ll run the numbers first.