Renters' Rights and Making Tax Digital for Landlords

Landlords: Renters’ Rights Is Coming — and So Is Quarterly Tax Reporting

If it feels like the pressure on landlords is increasing, that’s because it is.

The Renters’ Rights reforms are reshaping how tenancies are granted, managed and ended. At the same time, HMRC is introducing Making Tax Digital for Income Tax, which will fundamentally change how many landlords report their rental income.

Individually, each change is manageable. Together, they signal a clear shift: tighter regulation, more transparency, and far less room for error.

Here’s what you need to be preparing for.

---

Making Tax Digital – What Actually Changes?

From 6 April 2026, many landlords will move away from a single annual Self Assessment return.

Instead, you will be required to:

• Keep digital records of rental income and expenses
• Use HMRC-approved software
• Submit quarterly updates to HMRC
• File a final end-of-year declaration

This is not just a software update. It’s a move to ongoing reporting rather than a once-a-year exercise.

If your current system relies on spreadsheets, paper receipts or pulling figures together each January, it will need tightening up.

---

When Does It Apply?

The rollout is phased and based on gross income (before expenses):

• From April 2026 – if gross qualifying income exceeds £50,000
• From April 2027 – threshold reduces to £30,000
• From April 2028 – threshold reduces to £20,000

If you receive both rental and self-employed income, HMRC combines the two to assess whether you exceed the threshold.

The rules apply to individual landlords who file Self Assessment. Limited companies are not currently included.

Many landlords assume they are under the limit — until they total everything properly.

---

Why This Matters More Than It Looks

Quarterly reporting is arriving alongside significant changes under the Renters’ Rights legislation:

• The abolition of Section 21
• A shift to periodic tenancies
• Stronger enforcement powers for councils
• Increased compliance expectations
• Greater documentation and record keeping

The direction of travel is obvious. Landlords will need clearer systems, better records and stronger processes.

The casual approach that worked ten years ago will not work going forward.

---

What Sensible Landlords Should Be Doing Now

Waiting until early 2026 is not a strategy.

Now is the time to:

• Confirm whether you are likely to exceed the income threshold
• Speak with your accountant about compliant digital software
• Move to structured digital record keeping
• Review how income and expenditure are tracked
• Ensure tenancy documentation and compliance files are in order

Well-run portfolios will adapt smoothly. Disorganised ones will feel the strain.

---

Treat It Like a Business

Whether you own one property or several, the regulatory landscape is pushing landlords towards a more professional, business-led approach.

Those who plan early will protect profitability, reduce stress and avoid unnecessary risk.

If you would like to review your portfolio structure, compliance position or management arrangements ahead of these changes, our team would be pleased to advise.

You can request a compliance review directly here.