For property agents, the changes are important in two ways. Landlords may need support to understand whether the rules apply to them, and letting agents may need to decide whether they will manage reporting on behalf of landlords they represent. Plus, agents who trade as sole traders may also need to check whether MTD applies to their own Self-Assessment.
Support for members
Our dedicated Making Tax Digital Knowledge Hub includes key deadlines, HMRC links, guidance on compatible software, quarterly update, and signposting for agents who need to set up as agents with HMRC.
Members can also watch our webinar recording with HMRC, which gives a practical overview of what is changing, who will be affected, and how agents can support landlords.
Propertymark’s guidance is designed to help agents have informed conversations with clients and avoid a last-minute rush. However, Making Tax Digital is a tax reporting requirement; seek advice from a qualified tax professional if you are unsure how the rules apply to you or your clients.
HMRC also provides videos and webinars for agents, landlords and sole traders. These cover the rules, who is affected and when, practical preparation steps, software choices, client authorisation, signing up to Making Tax Digital, and how to use the system.
Making Tax Digital
Making Tax Digital for Income Tax is a new way for sole traders and landlords to report their income and expenses to HMRC. Letting agents can undertake this process on behalf of the landlords and help their clients understand the changes.
Key deadlines for landlords and sole traders
The first deadline was 6 April 2026. From that date, landlords and sole traders with a turnover of over £50,000 in the 2024 to 2025 tax year must use Making Tax Digital for Income Tax if their qualifying income comes from self-employment and/or property.
Further phases will follow:
From 6 April 2027, the rules will apply to those with a turnover of over £30,000 in the 2025 to 2026 tax year.
From 6 April 2028, the rules will apply to those with a turnover of over £20,000 in the 2026 to 2027 tax year.
HMRC will review Self-Assessment tax returns and write to taxpayers who need to use the service. However, landlords and sole traders remain responsible for checking whether the rules apply to them, even if they do not receive a letter.
A decision point for agents
Agents should decide whether they will act for landlords and manage their reporting (as this will affect onboarding, training, data collection, and how often information is needed from clients) and then speak to landlords early to agree what support they will provide. Some landlords may expect their agent to manage the process, while others may use an accountant, bookkeeper, or software provider.
A clear process will be needed to capture property income and expenses digitally. Records should include the date, amount and category of each item so that quarterly updates can be submitted more easily.
Agents who plan to act for landlords should also check HMRC’s agent guidance, make sure they have an Agent Services Account, and confirm client authorisations. Each client will still need to be signed up to MTD.
Software will be central to compliance
MTD cannot be completed using paper records or ordinary manual processes. Affected taxpayers must use compatible software to create, store and correct digital records of income and expenses.
Some landlords may choose software that creates and stores digital records. . Others may use bridging software, which connects existing records, such as spreadsheets, to HMRC’s system. The best option will depend on the landlord’s circumstances, the complexity of their income, and the support they receive from an agent or tax adviser.
Quarterly updates must be sent every three months for each relevant income source. After the final quarterly update, taxpayers will need to make any adjustments and submit them through compatible software.
Do not leave preparation too late
Those who are already in scope should check that they have signed up, chosen compatible software, and have a process in place for keeping digital records.
Those who fall below the £50,000 threshold should still check whether they will be affected in later phases. The lower thresholds from April 2027 and April 2028 mean many more landlords and sole traders will need to prepare.
