Do landlords need to comply with MTD?

Yes, if your gross rental income (combined with any self-employment income) exceeds u00a350,000 from April 2026, or u00a330,000 from April 2027. The threshold uses gross rent before expenses. Most landlords with 2-3 or more properties are likely to be above the threshold.

What records must landlords keep for MTD?

You must keep digital records of all rental income and allowable expenses on a transaction-by-transaction basis. This includes rent received, mortgage interest payments, insurance, repairs, agent fees, and any other property expenses. Records must be stored in your MTD software, not just in paper files.

Do joint property owners each need MTD?

Each joint owner is assessed individually. If your personal share of gross rental income plus any self-employment income exceeds the threshold, you must register for MTD in your own right. You can report either your share or the full property income in quarterly updates.

Can landlords claim mortgage interest under MTD?

Mortgage interest reporting under MTD follows the same rules as Self Assessment. Since April 2020, residential landlords receive a 20% tax credit for finance costs rather than a direct deduction. You report the full finance cost in your MTD records and the tax credit is applied in the Final Declaration.

What is the first MTD deadline for landlords in 2026?

If you are mandated from April 2026, your first quarterly update is due by 7 August 2026, covering income and expenses from 6 April to 5 July 2026. Your Final Declaration for the full 2026/27 tax year is due by 31 January 2028.

MTD ITSA Checklist for Landlords: April 2026 Preparation

Use this checklist to ensure you are fully prepared for MTD ITSA before the April 2026 deadline. Each item is ordered by the logical sequence in which it should be completed.

Step 1: Confirm Your Threshold Position

Calculate your gross rental income for 2024/25 (before expenses) Add any self-employment income you receive If combined total exceeds £50,000 — you are in Phase 1 (April 2026) If combined total exceeds £30,000 — you are in Phase 2 (April 2027) If below £30,000 — monitor for future threshold changes

Step 2: Choose and Set Up MTD Software

Select HMRC-approved MTD software (AccTek uses and recommends Xero) Create your Xero account (or confirm AccTek is setting this up for you) Connect your bank account(s) via bank feed for automatic transaction import Set up a tracking category for each rental property in your portfolio Configure income categories: rental income, FHL income (if applicable) Configure expense categories: repairs, finance costs, agent fees, insurance, professional fees Test that bank feed is pulling transactions correctly

Step 3: Register for MTD ITSA with HMRC

Have your UTR (Unique Taxpayer Reference) ready Log in to Government Gateway and navigate to MTD ITSA sign-up (or ask AccTek to register on your behalf) Complete the MTD ITSA sign-up process Authorise your MTD software to connect to HMRC Receive and save HMRC’s confirmation of registration If using AccTek: authorise AccTek as your MTD agent via HMRC’s agent authorisation

Step 4: Prepare Your Property Records

List all properties you own — addresses, ownership shares, rental start dates Identify which tenancies are active as of 6 April 2026 Confirm your mortgage interest amounts per property (for Section 24) Identify any furnished holiday lets and ensure they are tracked separately Confirm joint ownership arrangements and ownership splits Ensure letting agent is aware of MTD and can provide digital statements if required

Step 5: Understand the Quarterly Deadlines

Note Quarter 1 deadline: 5 August 2026 (covering 6 April – 5 July 2026) Note Quarter 2 deadline: 5 November 2026 Note Quarter 3 deadline: 5 February 2027 Note Quarter 4 deadline: 5 May 2027 Note Final Declaration deadline: 31 January 2027 Add all deadlines to your calendar (or confirm AccTek is managing these)

Step 6: Ongoing Record-Keeping Habits

Record every rent payment received in Xero (or confirm bank feed does this automatically) Capture repair and maintenance invoices digitally (photograph with Xero mobile app) Record mortgage interest each month Record letting agent fees as charged Record insurance premium payments Record void period expenses (council tax, utilities) — these are still deductible Review records monthly to catch any uncategorised transactions

Section 24 — Key Points for Landlords

Section 24 Reminder

Mortgage interest on residential buy-to-let properties is no longer directly deductible. You must record the full interest amount, and your accountant applies the 20% tax credit at the Final Declaration stage. Never deduct mortgage interest directly as an expense in your quarterly updates.

Frequently Asked Questions

How far in advance should I start preparing for MTD?

For April 2026, start no later than October 2025 — this gives you time to select software, register with HMRC, and configure your records before digital tracking must begin on 6 April 2026.

Do I need to do anything to my existing Self Assessment before switching to MTD?

Yes. Ensure your 2024/25 Self Assessment return (due January 2026) is filed and up to date. MTD ITSA begins with the 2026/27 tax year — your last traditional Self Assessment will be for 2025/26 (due January 2027 if you are not in Phase 1, or already MTD for 2026/27).

Let AccTek work through this checklist with you

We handle every item on this list for all AccTek clients — software, registration, record setup, and every quarterly submission.

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Sources & Official Guidance

›Making Tax Digital for Income Tax — HMRC main guidance for landlords
›Sign up for MTD for Income Tax — HMRC registration process
›Income Tax when you rent out a property — HMRC rental income and allowable expenses
›How to keep digital records for MTD — HMRC record-keeping requirements

All links verified as at July 2026. AccTek is not affiliated with HMRC.

MTD Checklist for Landlords — Get Ready for April 2026

Your Complete MTD ITSA Preparation Checklist for Landlords