Landlords earning more than £20,000 will be required to use Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) by the end of the current Parliament.

The government has confirmed it wants to bring bookkeeping online using approved software and says it will set out exact timings “at a future fiscal event”. It also committed to introduce MTD ITSA in April 2026 for those with a turnover of over £50,000, and in April 2027 for those with a turnover of over £30,000.

Since last year, landlords can participate part in a pilot, allowing their MTD compatible software to send data to HMRC every three months. There are currently 30 active participants and the HMRC states it expects numbers to increase from next April. Landlords with qualifying income can voluntarily sign up for MTD before April 2026 so they have more time to get used to the new process. Software is available at:

An HMRC spokesman stated “MTD will help self-employed individuals and landlords keep on top of their business planning and get their tax right. We have undertaken extensive engagement with stakeholders, which has informed the plans for its rollout.”  

The Institute of Chartered Accountants in England and Wales (ICAEW) backs digitalisation but does not support quarterly reporting which it believes will result in significant costs and an extra administrative burden for taxpayers in return for limited benefit to HMRC.

Caroline Miskin, senior technical manager digital taxation at  ICAEW Tax Faculty, adds: “The announcement at the Budget confirms that the new government is fully behind the previous government’s plans and timetable. An extension to those with turnover of more than £20,000 with no specific implementation date is an unwelcome distraction but it is a clear sign of intent.”