The way landlords report their income to HMRC is set to change significantly over the next year.
With Making Tax Digital (MTD) being introduced for landlords from April 2026, many property owners are starting to ask what this means for them — and how to prepare.
For landlords across Bridgwater, Taunton, Wellington, Burnham-on-Sea and Weston-super-Mare, understanding these changes early can help ensure everything runs smoothly when the new system comes into effect.
What Is Making Tax Digital?
Making Tax Digital is a government initiative designed to modernise the UK tax system by moving away from traditional annual tax returns and towards digital record keeping and more regular reporting.
Under MTD, landlords will be required to:
- Keep digital records of income and expenses
- Submit quarterly updates to HMRC
- Provide an end-of-year final declaration
The aim is to make tax reporting more accurate and up to date — but it will also require landlords to adopt new systems and processes.
When Does It Start?
Making Tax Digital for landlords will be introduced in phases:
- From April 2026 – for landlords earning over £50,000 per year
- From April 2027 – for landlords earning over £30,000
This means many landlords still have time to prepare — but planning ahead now will make the transition much easier.
What Does This Mean for Landlords?
For many landlords, particularly those who have been managing their own properties for years, this will represent a noticeable shift in how finances are handled.
Key changes include:
• Moving from annual reporting to quarterly submissions
• Maintaining accurate digital records
• Using compatible software to submit information to HMRC
• Increased importance of organised income and expense tracking
While this may sound complex at first, with the right systems in place it can become part of a straightforward routine.
Why This Matters for Somerset Landlords
Across Somerset, we still speak to many landlords who:
- Use spreadsheets or paper records
- Rely on annual updates to their accountant
- Manage finances alongside full-time work or other commitments
Making Tax Digital introduces a more structured approach — and for some landlords, this may require a change in how records are kept and maintained.
As with many of the recent changes in the property sector, the key theme is:
organisation and consistency.
Common Challenges Landlords May Face
As MTD approaches, some of the common concerns we are hearing include:
- How to keep accurate digital records
- Which software to use
- Managing quarterly reporting deadlines
- Ensuring nothing is missed
- Balancing administration with day-to-day responsibilities
These are all valid concerns — particularly for landlords who are already managing multiple responsibilities.
How Letting Agents Can Help Support You
While Making Tax Digital will ultimately be handled alongside your accountant, having well-structured records throughout the year will make the process significantly easier.
At Andrew Lees Lettings and Gibbins Richards Lettings, we already provide landlords with:
- Clear rental income statements
- Organised financial records
- Documentation of payments and charges
- Structured reporting that supports year-end accounts
For many landlords, this level of organisation becomes increasingly valuable as reporting requirements move to a more frequent cycle.
Working Alongside Your Accountant
We always recommend landlords work closely with a qualified accountant when preparing for Making Tax Digital.
We are pleased to work alongside Maxwells Chartered Accountants, who have been helping landlords understand how MTD will work in practice and how best to prepare.
By combining professional property management with expert accounting advice, landlords can ensure they are fully prepared for the changes ahead.
Preparing Ahead of April 2026
The introduction of Making Tax Digital is another example of the property sector becoming more structured and regulated.
The good news is that there is still time to prepare.
Landlords may wish to consider:
- Reviewing how they currently record income and expenses
- Speaking with their accountant about MTD readiness
- Ensuring their documentation is organised and accessible
- Considering whether additional support could simplify the process
As with many changes, preparation now can help avoid unnecessary stress later.
A Positive Step Forward
While Making Tax Digital introduces new requirements, it also represents a move towards a more modern and transparent system.
For landlords who are organised and proactive, the transition should be manageable — particularly with the right support in place.
📘 Learn More About Our Landlord Services
For full details on our management packages and landlord support:
Andrew Lees Lettings – Landlord Brochure
👉 https://www.andrewlees.co/Andrew-Lees-Charges-and-Fees-2022-v2.pdf
Gibbins Richards Lettings – Landlord Brochure
👉 https://www.gibbinsrichards.co.uk/wp-content/uploads/sites/14/2025/05/Landlord-Brochure-Gibbins-Richards.pdf
Disclaimer
This blog has been researched and created by Andrew Lees Lettings & Gibbins Richards Lettings and is accurate at the time of publication. It is intended for general informational purposes only and should not be relied upon as legal or financial advice. Landlords should seek independent advice from a qualified accountant where appropriate.
