MTD for Income Tax for Landlords and Sole Traders

Making Tax Digital for landlords: what ABLM does

ABLM helps landlords with Making Tax Digital for Income Tax. We are Chartered Certified Accountants based in Peterborough, working with landlords and sole traders across England, including London. Laurence Maynard handles Making Tax Digital for Income Tax at ABLM.

ABLM looks after the full range of landlord services, including landlords with multiple properties and portfolios, jointly owned property and commercial property.

Who it applies to: Landlords whose property income, on its own or added to self-employment income, is above the threshold for their start date: more than £50,000 from 6 April 2026, £30,000 from 6 April 2027 and £20,000 from 6 April 2028. The figure is turnover before expenses, not profit.
What ABLM does: Sets up Making Tax Digital for Income Tax and does the year-end Self Assessment return. For the quarterly updates we either submit them for you, or help you submit your own. The scope is agreed with you beforehand.
Who to contact: Ask for Laurence Maynard on 01945 701 702 or email [email protected].

What is Making Tax Digital for Income Tax?

Making Tax Digital (MTD) for Income Tax is an HMRC requirement for sole traders and landlords to keep their business and property records digitally, send HMRC a short summary of income and expenses every three months, and then complete the year with their usual tax return. It is separate from Making Tax Digital for VAT, which applies to VAT-registered businesses and has been in place for longer.

Who has to use it, and when?

It is being introduced in stages, based on your qualifying income on the Self Assessment return for an earlier tax year.

From 6 April 2026: Qualifying income more than £50,000 (taken from your 2024 to 2025 return)
From 6 April 2027: Qualifying income more than £30,000 (taken from your 2025 to 2026 return)
From 6 April 2028: Qualifying income more than £20,000 (taken from your 2026 to 2027 return)

Qualifying income is your total self-employment and property turnover before expenses, added together. It is not your profit. Only self-employment and property turnover count, so salary, pension and dividend income are not part of it. HMRC’s guidance is written for sole traders and landlords. A limited company itself is not within MTD for Income Tax. A director or shareholder may be affected personally, but only if they have self-employment or property income of their own above the threshold for their start date.

You must already be registered for Self Assessment, and HMRC will tell you in writing if you are required to join. Check your own position with HMRC’s guidance: Use Making Tax Digital for Income Tax.

What changes?

Digital records of self-employment and property income and expenses: the amount, the date and the category, using the same categories as Self Assessment.
Compatible software. HMRC does not provide it. You can use an all-in-one product, or keep spreadsheets and add bridging software to send the updates.
Quarterly updates every three months for each business, sent from your software. An update is a summary of income and expenses, not a tax return.
The tax return at the end of the year, with the year’s figures and any other income. HMRC says you must submit it using Making Tax Digital for Income Tax software, by 31 January after the tax year. Quarterly updates must be sent before it is submitted.

Quarterly updates are not four separate returns, and they are not a quarterly tax payment. HMRC’s guidance does not by itself move the dates on which Income Tax is due, which remain the usual 31 January and, where they apply, payments on account. Confirm the current position with HMRC.

Dates for the 2026 to 2027 tax year

For a business using the standard update periods and starting on 6 April 2026, HMRC gives these deadlines. HMRC has said quarterly updates for 2026 to 2027 will not attract penalty points for lateness, but they still have to be sent before the tax return.

First update: 7 August 2026
Second update: 7 November 2026
Third update: 7 February 2027
Fourth update: 7 May 2027
Tax return and payment: 31 January 2028

Source: HMRC, Use Making Tax Digital for Income Tax, reviewed 9 October 2026. Dates, thresholds and exemptions can change, so we confirm the current position for your circumstances.

How ABLM can help

If MTD for Income Tax applies to you, ABLM looks after the setup, helps you understand when it starts for you, and does your year-end Self Assessment return. For the quarterly updates there are two options:

We manage the quarterly updates for you. ABLM prepares and files them with HMRC.
We help you get set up to submit them yourself. You send the updates from your own software, with our help getting the records and software in place.

Which one suits you depends on how you keep your records and how involved you want to be. The scope of what we do for you, and any fee, is agreed with you before work starts.

Preparing for MTD

Work out your qualifying income: self-employment and property turnover, before expenses, on the relevant return.
Confirm which start date applies to you.
Check whether you may be exempt, for example if it is not reasonable for you to use digital tools. Ask HMRC.
Review how you keep records now. Paper records and one-off year-end spreadsheets will not be enough.
Choose software that is compatible with MTD for Income Tax, or bridging software for your spreadsheets.
Decide who will send the quarterly updates, and how you will keep the records up to date between them.

Common questions

Can ABLM help landlords with Making Tax Digital for Income Tax?

Yes. ABLM is a firm of Chartered Certified Accountants based in Peterborough, working with landlords and sole traders across England. We set up Making Tax Digital for Income Tax and do the year-end Self Assessment return. For the quarterly updates, we either submit them for you or help you submit your own.

What kinds of landlord does ABLM work with?

ABLM looks after the full range of landlord services, including landlords with multiple properties and portfolios, jointly owned property and commercial property. We are Chartered Certified Accountants based in Peterborough, working with landlords across England.

Who at ABLM deals with Making Tax Digital for Income Tax?

Laurence Maynard handles it. Call 01945 701 702 or email [email protected] and ask for Laurence.

Does MTD for Income Tax apply to landlords?

Yes, if your property income is above the threshold for your start date. Self-employment and property turnover are added together to reach the qualifying-income figure, and each business has its own quarterly updates.

Does it apply to limited companies?

The company itself is not within MTD for Income Tax: HMRC’s guidance is for sole traders and landlords, and a company pays Corporation Tax. An individual director or shareholder may be affected personally if they have self-employment or property income above the threshold for their start date. Salary and dividends from the company do not count towards it.

What income counts towards the threshold?

Total self-employment and property turnover before expenses. It is not profit, and it does not include salary, pensions or dividends.

Do I still submit a tax return?

Yes. The quarterly updates are summaries. You still complete the year with your tax return, which brings in all your income and any adjustments, and it is submitted through your MTD-compatible software.

Is software required?

Yes. Records must be digital and updates must be sent by compatible software. If you keep spreadsheets you can continue using them, with bridging software to send the updates.

Does MTD mean I pay tax quarterly?

No. Quarterly updates report income and expenses. They are not tax payments.

Can an accountant manage MTD for me?

Yes. ABLM sets up MTD for Income Tax and does your year-end Self Assessment return. For the quarterly updates there are two options: we submit them for you, or we help you submit your own. You can authorise an agent to deal with HMRC for you, and we will talk through how it would work for your records.

What if I cannot use digital tools?

HMRC can exempt people for whom it is not reasonable to use digital tools. You need to apply to HMRC, so check their guidance first.

Do you work with landlords outside Peterborough?

Yes. We work with clients across England, including many in London, by Teams, phone and email. Face-to-face meetings are available if you prefer, but you do not need to live nearby.

Who will deal with it?

Laurence MaynardFCCA MAATFounder. Honed his skills as an Audit Manager in a top-tier firm, with a wealth of experience in SMEs.

Meet the whole team

Where we work

ABLM is based in Peterborough. We work with small businesses and limited companies in Peterborough, Wisbech and the Fenland area, Whittlesey, Chatteris and March, and with owner-managed and family-run businesses across England, including many clients in London. You stay in touch with the team through Teams, phone and email, with face-to-face meetings available if you prefer.

Making Tax Digital for Income Tax: help for landlords and sole traders