MTD for Income Tax Software
Making Tax Digital
Software for Landlords
and Property Income
From April 2026, landlords earning over £50,000 annually must use HMRC-recognised software to keep digital records and submit quarterly updates. 11 MTD Bridge helps property income filers transition seamlessly to these new Making Tax Digital for Income Tax (ITSA) rules.
Why this matters
HMRC is phasing out traditional paper-based Self Assessment for high-earning landlords, replacing it with digital record-keeping.
Preparing early ensures you avoid filing penalties, reduce manual errors, and get a real-time view of your estimated tax bill.
Our tools bridge the gap between your existing records and HMRC’s compliance portal.
What is Making Tax Digital for Landlords?
Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is HMRC's new system for declaring property and business income. Instead of an annual tax return, qualifying landlords must use compatible software to maintain digital records of their income and expenses, and send summary updates to HMRC every three months.
The goal is to eliminate manual data entry errors, make tax administration more efficient, and give landlords a clearer, year-round picture of their tax liabilities.
Which Landlords Need MTD-Compatible Software?
You will be legally required to use MTD-compatible software based on your total gross income (before expenses are deducted). The rollout happens in two phases:
- From 6 April 2026: Landlords and sole traders with a total qualifying income over £50,000.
- From 6 April 2027: Landlords and sole traders with a total qualifying income over £30,000.
Important note on joint ownership: If you own a property jointly, only your individual share of the gross property income counts towards your personal MTD threshold.
What Rental Income Counts Towards MTD?
HMRC calculates your threshold by combining all your gross property and trading income. The following types of income count towards the £50,000 or £30,000 limits:
- Residential UK property rental income.
- Commercial property rental income.
- Furnished Holiday Lettings (FHL) income.
- Overseas property income.
- Any sole trader business income (combined with your property income).
You do not need to include income from PAYE employment, pensions, or savings when calculating if you cross the MTD threshold.
How Landlords Will Submit Information Under MTD
1. Keep Digital Records
Record every rent payment and allowable expense digitally as near to the date of the transaction as possible.
2. Send Quarterly Updates
Use compatible software to send a summary of your property income and expenses to HMRC every three months.
3. Review Tax Estimates
Receive a year-to-date tax estimate from HMRC after each update, helping you budget for your final bill.
4. Final Declaration
Submit a single Final Declaration by 31 January (replacing the old tax return) to confirm your yearly totals and claim reliefs.
Who Else Does This Affect?
MTD applies broadly, ensuring that different types of property ownership are accounted for, including:
- Accidental landlords: Individuals renting out an inherited property or a former main home.
- Portfolio landlords: Managing multiple properties requires grouping all income for the threshold test.
- Mixed-income earners: Landlords who also run a self-employed business (e.g., freelance work + rental property).
- Non-resident landlords: Living abroad but receiving UK property income over the threshold.
What Records Must Be Kept Digitally?
Rental Income
The exact amount, date, and category of all rent and service charges received.
Property Expenses
Costs for repairs, letting agent fees, insurance, and allowable maintenance.
Transaction Dates
The date each transaction took place to ensure it aligns with the correct quarterly reporting period.
Property Details
The address and specific details for each property within your portfolio.
A straightforward route for property filing
Managing spreadsheets, tracking physical receipts, and facing a massive January admin burden is stressful. An MTD bridging solution or compatible software helps landlords organize records seamlessly and hit quarterly deadlines with confidence.
Automated Organization
Keep property income and allowable expenses in one easily reviewed workflow.
HMRC-Ready Filing
Transmit data directly to HMRC using secure, recognized API pathways.
Fewer Manual Errors
The software validates your totals before submission, reducing costly mistakes.
Accountant Collaboration
Easily grant access to your tax agent or accountant to review your filings.
Why choose 11 MTD Bridge
- Simple filing journey designed specifically for landlords
- HMRC-compliant submission tools
- Connects your existing spreadsheets to the HMRC portal
- Clear separation of VAT and Income Tax filing workflows
Start with the right filing path
Whether you are a residential landlord preparing for MTD for Income Tax, or a commercial landlord needing to submit quarterly VAT returns, ensure you choose the exact software module that matches your HMRC obligations.
Frequently Asked Questions About Landlords Using 11 MTD Bridge
Find answers to the most common questions about our online tax filing service.
11 MTD Bridge Limited
14 Somerstown Court, Reading,
England, RG1 7TY.
Company number: 16416027
