The government claims Making Tax Digital helps landlords stay on top of their tax affairs.
In a Parliamentary written answer, Exchequer Secretary to the Treasury, Dan Tomlinson, said Making Tax Digital works well for businesses “of all types and sizes”.
Making Tax Digital for Income Tax became compulsory in April 2026 for landlords and sole traders with qualifying income of more than £50,000.
The threshold will fall to more than £30,000 from April 2027, bringing a further group of landlords, property owners and self-employed people into the system.
MTD works well for landlords
Mr Tomlinson said: “The government has worked with taxpayers, representative bodies and software developers to ensure Making Tax Digital (MTD) for Income Tax works well for businesses of all types and sizes.
“MTD will help businesses and landlords keep on top of their tax affairs. It places small businesses on a more digital footing, with digital tools helping to reduce errors and making annual tax returns easier.
“The government has worked with the software industry to ensure a wide range of options are available to suit different needs and budgets, including low-cost and free software, supporting those with the simplest affairs. Many products are designed for users who manage their own tax affairs or those new to digital tools.”
The news comes as landlords who have not signed up for Making Tax Digital (MTD) may soon find that HMRC has done it for them.
The tax authority is beginning automatic registration from this month, in stages, for people it believes should already be using MTD for Income Tax.
HMRC says more than 570,000 customers have joined the service, with more than 436,000 sending their first quarterly update.
