HMRC Digital Updates for Landlords Staying Compliant in a Paperless Era

The way we handle taxes is changing fast, and if you’re a landlord in the UK, you can’t afford to ignore it. From keeping digital records to filing quarterly updates, landlords will soon need to follow a brand-new process under the Making Tax Digital (MTD) scheme. Sound overwhelming? Don’t worry. This blog explains everything you need to know about HMRC’s latest digital updates, how they apply to you, and what steps you can take now to stay compliant in a paperless era.

Latest HMRC Digital Updates for Landlords

Here’s what landlords like you need to know right now:

Making Tax Digital (MTD) Roll-Out

From April 2026, landlords with property/self-employment income over £50,000 must join MTD for Income Tax.

• From April 2027, the threshold drops to £30,000
• Further expansion to £20,000 is likely by 2028

Quarterly Digital Submissions

As a landlord, you need to submit income/expense summaries every 3 months via a HMRC-recognised software. You must also submit an End of Period Statement (EOPS) and a Final Declaration at the end of the year.

Digital Record-Keeping Only

You must not use any paper-based records or basic Excel spread sheets. Additionally, you must use HMRC-compatible accounting software, such as Xero, QuickBooks, or FreeAgent.

Penalty Reform

There is also a significant increase in late filing penalties (3% after 15 days, 6% after 30 days) and a new points-based system for persistent non-compliance.

Voluntary Pilot & Guidance

HMRC webinars, video tutorials, and early signup schemes are now available.Landlords will receive communication based on their 2024–25 tax returns.

What Does This Mean for You?

If you rent out property in the UK and your income falls into the above thresholds, you’ll be legally required to follow these new rules. This means no more paper receipts and no more waiting until the end of the year to sort your tax.

Steps to Stay Compliant

Get the Right Software
Choose landlord-friendly tools that are HMRC-recognised. Most include features to track rental income, expenses, repairs, and even mileage.

Work With a Trusted Accountant

Believe it or not but a trusted accountant can help you set everything up, stay on top of deadlines, and avoid unnecessary penalties.

Start Now, Not Later

The sooner you move to digital, the smoother the transition will be. Even if MTD doesn’t apply to you until 2026 or 2027, early adoption will reduce stress later. So, taxes are not going anywhere but paperwork can. Yes, going digital might feel like a big change. However in the long run, it’s a win-win situation because it will allow real-time tracking of your finances, better compliance, fewer surprises during tax season and less errors. Moreover, you will have peace of mind knowing you’re always on track.

As a reputed UK based accounting firm, we specialise in helping you stay ahead of HMRC’s ever-evolving tax regulations. It does not matter whether you own a single rental property or manage an extensive portfolio comprising multiple rental properties; our experienced team is always here to ensure a smooth transition to Making Tax Digital (MTD). We help you in selecting the right software to ensure timely submissions and staying fully compliant. Our experienced accountants take the stress out of tax so you can focus on what matters most. So, don’t wait until the deadline is near. Contact us today to learn more, ask questions, or book a free, no-obligation consultation.