Making Tax Digital for landlords: what records you need in 2026

Making Tax Digital for Income Tax is now live for the first group of UK landlords and sole traders. It changes the record-keeping and reporting rhythm, but it does not need to turn every rental property into a separate admin project.

The quick answer for landlords in 2026

You may need to use Making Tax Digital for Income Tax if you are registered for Self Assessment, receive property or self-employment income, and your total qualifying income is above the relevant threshold. HMRC phases the requirement in according to the gross qualifying income shown on an earlier tax return.

HMRC says it checks qualifying income each year. Do not assume that receiving no letter automatically means the rules do not apply. Check your own position using the official GOV.UK eligibility guidance, and review any exemption that may apply to your circumstances.

The threshold is based on qualifying gross income before expenses—not rental profit.

What counts as qualifying income?

Qualifying income is broadly your total gross income from property and self-employment before expenses. If you have more than one relevant income source, combine them. For example, £38,000 of gross property income plus £15,000 of sole-trade turnover gives £53,000 of qualifying income.

PAYE income, dividends, pensions and partnership profit do not count towards this MTD qualifying-income calculation. If a jointly owned property produces rent, your own share of that gross property income counts. Residence status can also affect whether foreign property and self-employment income is included.

Because edge cases matter, use HMRC’s current explanation to work out your qualifying income or ask a qualified tax adviser.

What digital records should a landlord keep?

Compatible software must be able to create, store and correct digital records, send quarterly updates and submit the tax return. HMRC does not provide the software. Your records should make each income and expense entry understandable without reconstructing it from memory months later.

For each transaction, keep enough detail to identify:

• Date: when income was received or the expense occurred.
• Amount: the value recorded using the accounting basis that applies to you.
• Category: the relevant income or expense category.
• Property: which rental property or property business the entry relates to.
• Evidence: the connected invoice, receipt, statement or supporting note.
• Context: the tenant, supplier, job or reason where it helps explain the entry.

Property-level detail gives you more than tax preparation. It lets you understand the real cost and performance of each rental while keeping the source evidence close to the transaction.

What quarterly updates actually change

MTD introduces a regular reporting rhythm. Your compatible software sends summary information about business income and expenses to HMRC during the year. You still complete the tax-return process after the tax year, so quarterly updates are not four separate final tax returns.

The practical implication is simple: your records need to stay current. A carrier bag of receipts handled once a year no longer fits the workflow. HMRC’s MTD step-by-step guidance explains the official process and software requirements.

A practical property-by-property workflow

1. 1
   Create one record for each property

   Use a consistent property name or identifier across rent, expenses, documents and your accounting software.

2. 2
   Capture documents when they arrive

   Save the invoice or receipt immediately, then add the date, amount, supplier, category and property.

3. 3
   Separate evidence from payment

   An invoice explains the cost; the bank transaction proves payment. Connect them without treating them as identical records.

4. 4
   Review monthly

   Match rent received, resolve missing evidence and correct categories while the activity is still familiar.

5. 5
   Reconcile before each update

   Check the quarter is complete in your MTD-compatible software and resolve uncertain items with your adviser before submission.

If your files are currently scattered across email, cloud folders and spreadsheets, start with the essential landlord document checklist. Then use the same naming and property structure for your maintenance and equipment records.

Where Oxyria fits—and where it does not

Oxyria is designed to help landlords collect and organise source information around each property: leases, invoices, reminders, equipment records and important dates. That can reduce the time spent finding evidence and make regular review more manageable.

Oxyria is not being presented as HMRC-compatible filing software. You still need compatible software or an authorised agent to keep the required digital accounting records, send quarterly updates and submit your tax return. The useful connection is a cleaner source-record workflow feeding a proper tax process—not a claim that one tool replaces the other.

This guide provides general organisational information and is not legal, tax, financial or regulatory advice. MTD requirements and individual circumstances can change. Check current GOV.UK guidance and seek qualified advice where appropriate.