Making Tax Digital for Income Tax applies equally to landlords. If you let residential or commercial property in Surrey and your income from self-employment and property combined is above £50,000, you are already within scope. Here is everything you need to know.
The MTD IT thresholds for landlords
- From April 2026: landlords with qualifying income above £50,000
- From April 2027: landlords with qualifying income above £30,000
- From April 2028: landlords with qualifying income above £20,000
'Qualifying income' includes both self-employment income and property rental income combined. If you are both a self-employed tradesperson and a landlord, both streams count towards the threshold.
What MTD IT means for landlords in practice
- Keep digital records of rental income and expenses throughout the year
- Submit quarterly updates to HMRC using compatible software (by 7 August, 7 November, 7 February, and 7 May each year)
- Submit a final declaration by 31 January each year
What software should Surrey landlords use?
HMRC-approved options include Xero, QuickBooks, FreeAgent and specialist landlord software such as Hammock. If you use a spreadsheet to manage rental accounts, you can still comply using bridging software — though a cloud platform will be considerably easier.
Penalties for non-compliance
HMRC's penalty regime for MTD IT is points-based: accumulate four points for late submissions and a £200 fixed penalty follows. Deliberate non-compliance carries heavier sanctions.
What if you have a property agent?
If a letting agent manages your property, you are still responsible for your own MTD IT compliance. Your agent can provide records, but the quarterly submissions must come from you or your authorised accountant.
Talk to us about your situation
Our chartered accountants work with small businesses, landlords and contractors across Surrey, Kent and Sussex. Get in touch for a free initial consultation.
