Making Tax Digital

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What letting agents need to know
Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC. 

It will be phased in from 6 April 2026, and the change will have practical implications, particularly for those who rely on annual records or paper-based processes. 

Does Making Tax Digital apply to you?

Letting agents can undertake this process on behalf of the landlords they represent and help their clients understand the changes. If you trade as a sole trader, Making Tax Digital for Income Tax may apply to your own Self Assessment.

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Key dates

From
6 April 2026

If you/your landlords qualifying income is over £50,000 (based on income for the 2024/25 tax year), you’ll need to start submitting quarterly reports to HMRC through compatible software.

From
6 April 2027

If you/your landlords qualifying income is over £30,000 (based on income for the 2025/26 tax year), you’ll need to start submitting quarterly reports to HMRC through compatible software.

From
6 April 2028

If you/your landlords qualifying income is over £20,000, you’ll need to start submitting quarterly reports to HMRC through compatible software.

What you need to do for your landlords

Decide early whether you will act for your landlords and manage their reporting. This will affect onboarding, training, and how often you will need information from your client.

You will need a clear process to capture property income and expenses digitally (date, amount and category) so that quarterly updates are straightforward. We have outlined the key processes below so that you can prepare and sign up for the service before you need to use it.

Making Tax Digital for sole traders

If you get self-employment or property income, find out how to sign up for and use Making Tax Digital for Income Tax.

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Exemptions

Checking if you are eligible for exemptions is not specific to property agents. This will depend on an individual’s circumstances and tax position. HMRC sets out the automatic and temporary exemptions and who can claim them, and also explains how to apply if someone is digitally excluded.

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