Last week’s Spring Statement didn’t bring any major surprises for landlords, and for once, that’s actually good news. There were no new tax measures, no fresh compliance hurdles, and no curveballs for property investors.
But beneath the headlines, something did shift, and if you're a landlord with rental income over £20,000, you’ll want to read on.
Making Tax Digital: New Thresholds & Year-End Changes
While not formally part of the Spring Statement, HMRC used the announcement to confirm some key changes to the rollout of Making Tax Digital (MTD) for Income Tax:
New income thresholds confirmed
- From April 2026, landlords earning £50,000+ will need to join MTD
- From April 2027, the threshold drops to £30,000+
- From April 2028, it reduces again to £20,000+
This phased approach gives smaller landlords more time to prepare, but it’s also a clear sign that full digital tax compliance is on the way.
End of Year submissions must be digital
HMRC has confirmed that landlords using MTD must complete their year-end tax return through software, paper forms and alternative submissions will no longer be accepted.
The government’s announcement that 900,000 sole traders and landlords must adopt the Making Tax Digital (MTD) initiative is a ‘step too far’ for many.
That’s the belief of ARLA Propertymark president Angharad Trueman who says that small landlords, especially those who are older and less tech-savvy, will struggle.
This step also comes on top of the increasing nervousness in the private rented sector about the impact of the Renters’ Rights Bill.
On LinkedIn, Ms Trueman said “the creation of a £20,000 threshold means many, many more landlords will fall into this bracket, and it’s a risk that this may be the final straw for many.”
The MTD initiative will shift tax management into a fully digital framework from next year.
That’s when self-employed individuals and landlords earning above £50,000 annually must comply with MTD for Income Tax Self-Assessment (ITSA). MTD seeks to simplify tax administration by requiring digital record-keeping and quarterly submissions to HM Revenue and Customs (HMRC) via approved software.
Launched in 2015, the programme aims to enhance accuracy and efficiency, replacing traditional annual Self-Assessment returns with real-time data.
Taxpayers will receive estimated calculations to aid financial planning, finalising their obligations digitally at year-end.