Making Tax Digital (MTD) is reshaping how landlords and property investors report rental income. Instead of relying on a single annual submission, the focus is now on regular, real-time reporting to HMRC.

At Watson Knipe, we are helping landlords and self-employed businesses prepare early, putting clear systems in place to ensure the transition is straightforward and fully managed.

What is Making Tax Digital

MTD for Income Tax requires landlords to keep digital records and submit quarterly updates to HMRC using compatible software.

When you need to start using MTD for Income Tax depends on your qualifying income within a tax year. If your rental income (or combined rental and self-employment income) exceeds:

  • £50,000 for the 2024 to 2025 tax year, you will need to use it from 6 April 2026
  • £30,000 for the 2025 to 2026 tax year, you will need to use it from 6 April 2027
  • £20,000 for the 2026 to 2027 tax year, the government has set out plans to introduce legislation to lower the qualifying income threshold

Under MTD, you will need to:

  • Maintain digital records of rental income and expenses
  • Submit quarterly summaries to HMRC
  • Complete your annual tax return as a final declaration

Quarterly submissions follow a fixed cycle, with deadlines shortly after each three-month period ends.

While reporting becomes more frequent, your final tax position remains confirmed annually, taking into account all other income streams.

Why choose Watson Knipe?

For many landlords, MTD introduces additional complexity. Our role is to make it simple and straightforward for you.

We have built a structured, practical process that works around how you already run your business.

  • Simple record keeping - Whether you use software like Hammock or prefer spreadsheets, we provide a system that works for you.
  • Accounting Software set up - Hammock provides fully digital, categorised records aligned with property tax requirements, along with a running tax forecast so you can plan and avoid unexpected liabilities.
  • Quarterly submission management - We review your data, make any necessary adjustments, and submit your updates to HMRC on your behalf.
  • Ongoing guidance and reminders: We track deadlines and prompt you in advance, so you are always prepared.

We don’t just help you meet the requirements. We help you build a more organised, forward-looking approach to your finances.

We work with landlords and property investors based in Derby, Nottingham, Leicester and across the UK. If you are interested in finding out more about our company secretarial services, don't hesitate to get in touch with us by calling 01623 490 120 or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..