New tax rules for buy-to-let landlords from 2026

We at Thornley Groves want to make you aware of some important changes that are coming into effect from April 2026. 

The UK Government is introducing Making Tax Digital (MTD) for Income Tax, which will affect how landlords report their income tax to HMRC.
The original plan was for Landlords income of £10,000 or more from their properties must file their income and expenditure tax returns quarterly (instead annually) from 2024, however, that has been moved to 2026/7. 

From April 2026, all self-employed landlords or any landlord with an income of more than £50,000 will need to keep digital records and send HMRC via approved software quarterly updates on their income and expenditure.

 

Those landlords with a rental income of between £30,000 and £50,000 will need to do this from April 2027.

This means there will be four extra filings a year, with a fifth filing required to collate all the information.The new regulations will also introduce a penalty point system to encourage compliance with submission dates. 
The points system will replace the current fine structure, with an automatic £200 penalty applied once a certain number of points have been reached. 

Exemptions are available for those who cannot cope with digital tax returns for genuine reasons. Landlords wishing to seek an exemption must apply through the HMRC website, and each case will be considered individually.

 

We understand this may be confusing and overwhelming for some landlords. 
That's why we are here to help. If you have any questions or concerns about MTD for Income Tax, please don't hesitate to contact us.

We are happy to assist you and guide you through the process. And if we don't know the answer, we know someone who will!

 

Remember, these changes will be in effect from 6 April 2026, so it's essential to start preparing for them now. By getting ahead of the game, you can ensure that your tax returns are submitted on time and avoid penalties.