Making Tax Digital for Landlords 2026: Complete UK Guide

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ways

August

helps

Everything you need to manage your properties, finances, and tenants. All in one place.

Track rent, expenses, and taxes, all automatically

Q1 Update

Submitted on 15 Jul 2026

􀆅

Submitted

Total income

£3,405

Total expenses

-£2,335

Net profit

£1,070

Link your bank once and August matches payments to tenants automatically. Track expenses, snap receipts, and stay MTD-ready. No spreadsheets needed.

Learn more about Rent Tracking

Stay compliant, organised, and ahead of deadlines

5

/22

Completed tasks

Complete all essential and required tasks to stay compliant.

EPC, Gas Safety, EICR, Right to Rent. August tells you exactly what's required and guides you through it step by step. No more guessing.

Learn more about compliance

AI Property Assistant

Ask about your portfolio. August Intelligence knows your properties inside and out.

Property Insights

EPC ratings, property values, and tax bands, all pulled in automatically for every property.

Maintenance Reporting

Tenants report issues directly in the app. You track, assign, and resolve. No more lost emails.

Tenant App

A dedicated portal for tenants to pay rent, report issues, and access their documents.

Making Tax Digital

Digitise receipts, track rental income, and submit to HMRC. All from one place.

Smart Reminders

Never miss a certificate renewal or tenancy deadline. August nudges you before it's too late.

More Landlord Software Features from August

Discover more features

More

ways

August

helps

Everything you need to manage your properties, finances, and tenants. All in one place.

Track rent, expenses, and taxes, all automatically

Q1 Update

Submitted on 15 Jul 2026

􀆅

Submitted

Total income

£3,405

Total expenses

-£2,335

Net profit

£1,070

Link your bank once and August matches payments to tenants automatically. Track expenses, snap receipts, and stay MTD-ready. No spreadsheets needed.

Learn more about Rent Tracking

Stay compliant, organised, and ahead of deadlines

5

/22

Completed tasks

Complete all essential and required tasks to stay compliant.

EPC, Gas Safety, EICR, Right to Rent. August tells you exactly what's required and guides you through it step by step. No more guessing.

Learn more about compliance

AI Property Assistant

Ask about your portfolio. August Intelligence knows your properties inside and out.

Property Insights

EPC ratings, property values, and tax bands, all pulled in automatically for every property.

Maintenance Reporting

Tenants report issues directly in the app. You track, assign, and resolve. No more lost emails.

Tenant App

A dedicated portal for tenants to pay rent, report issues, and access their documents.

Making Tax Digital

Digitise receipts, track rental income, and submit to HMRC. All from one place.

Smart Reminders

Never miss a certificate renewal or tenancy deadline. August nudges you before it's too late.

More Landlord Software Features from August

Discover more features

More

ways

August

helps

Everything you need to manage your properties, finances, and tenants. All in one place.

Track rent, expenses, and taxes, all automatically

Q1 Update

Submitted on 15 Jul 2026

􀆅

Submitted

Total income

£3,405

Total expenses

-£2,335

Net profit

£1,070

Link your bank once and August matches payments to tenants automatically. Track expenses, snap receipts, and stay MTD-ready. No spreadsheets needed.

Learn about Rent Tracking

Stay compliant, organised, and ahead of deadlines

5

/22

Completed tasks

Complete all essential and required tasks to stay compliant.

EPC, Gas Safety, EICR, Right to Rent. August tells you exactly what's required and guides you through it step by step. No more guessing.

Learn about compliance

AI Property Assistant

Ask about your portfolio. August Intelligence knows your properties inside and out.

Property Insights

EPC ratings, property values, and tax bands, all pulled in automatically for every property.

Maintenance Reporting

Tenants report issues directly in the app. You track, assign, and resolve. No more lost emails.

Tenant App

A dedicated portal for tenants to pay rent, report issues, and access their documents.

Making Tax Digital

Digitise receipts, track rental income, and submit to HMRC. All from one place.

Smart Reminders

Never miss a certificate renewal or tenancy deadline. August nudges you before it's too late.

Pricing

Simple

pricing.

Free

for small portfolios

&

tenants

30 day free trial

14 day money back guarantee

Cancel any time

Save £1500 per year*

Monthly

Yearly

-20%

Free

£0

/month

Start free

2 tenancies

1 bank account

View of income and expenses

Smart tenancy setup

Automatic document scanning

Growth

£8.99

/month

Try free for 30 days

Everything in "Free"

5 tenancies

MTD reporting

2 bank accounts

Link 2 organisations

Portfolio

Portfolio+

£29.99

/month

Try free for 30 days

Everything in "Portfolio"

Unlimited tenancies

MTD reporting

20 bank accounts

Link 5 organisations

Pricing

Simple

pricing.

Free

for small portfolios

&

tenants

30 day free trial

14 day money back guarantee

Cancel any time

Save £1500 per year*

Monthly

Yearly

-20%

Free

£0

/month

Start free

2 tenancies

1 bank account

View of income and expenses

Smart tenancy setup

Automatic document scanning

Growth

£8.99

/month

Try free for 30 days

Everything in "Free"

5 tenancies

MTD reporting

2 bank accounts

Link 2 organisations

Portfolio

Portfolio+

£29.99

/month

Try free for 30 days

Everything in "Portfolio"

Unlimited tenancies

MTD reporting

20 bank accounts

Link 5 organisations

Pricing

Simple

pricing.

Free

for small portfolios

&

tenants

30 day free trial

14 day money back guarantee

Cancel any time

Save £1500 per year*

Monthly

Yearly

-20%

Free

£0

/month

Start free

2 tenancies

1 bank account

View of income and expenses

Smart tenancy setup

Automatic document scanning

Growth

£8.99

/month

Try free for 30 days

Everything in "Free"

5 tenancies

MTD reporting

2 bank accounts

Link 2 organisations

Portfolio

Portfolio+

£29.99

/month

Try free for 30 days

Everything in "Portfolio"

Unlimited tenancies

MTD reporting

20 bank accounts

Link 5 organisations

Trusted by Landlords across the UK

Landlords

love it.

Here's why.

“I was drowning in spreadsheets and missing deadlines. August gave me my sanity back - and saved me from a £5,000 fine I didn't even know was coming.”

Laura M.

Landlord from Leeds, 5 properties

"Finally I can see what each property actually costs me. Turns out one of mine was eating all the profit."

Rebecca M.

Landlord from Bristol, 4 properties

"I used to dump everything in a spreadsheet and panic at tax time. Now it's all organised as I go."

James T.

Landlord from Manchester, 3 properties

Trusted by Landlords across the UK

Landlords

love it.

Here's why.

“I was drowning in spreadsheets and missing deadlines. August gave me my sanity back - and saved me from a £5,000 fine I didn't even know was coming.”

Laura M.

Landlord from Leeds, 5 properties

"Finally I can see what each property actually costs me. Turns out one of mine was eating all the profit."

Rebecca M.

Landlord from Bristol, 4 properties

"I used to dump everything in a spreadsheet and panic at tax time. Now it's all organised as I go."

James T.

Landlord from Manchester, 3 properties

Trusted by Landlords across the UK

Landlords

love it.

Here's why.

“I was drowning in spreadsheets and missing deadlines. August gave me my sanity back - and saved me from a £5,000 fine I didn't even know was coming.”

Laura M.

Landlord from Leeds, 5 properties

"Finally I can see what each property actually costs me. Turns out one of mine was eating all the profit."

Rebecca M.

Landlord from Bristol, 4 properties

"I used to dump everything in a spreadsheet and panic at tax time. Now it's all organised as I go."

James T.

Landlord from Manchester, 3 properties

FAQ

Got questions?

We've got answers

Answers to the most common questions from Landlords and Tenants using August.

Frequently asked questions about Making Tax Digital

When does MTD start for landlords?

Making Tax Digital for Income Tax starts on 6 April 2026 for landlords and sole traders with qualifying income over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Qualifying income means your total gross rental income plus any self-employment income before expenses. If you're unsure which phase applies to you, use the MTD calculator to check your estimated start date. August helps landlords in every phase get set up before their first quarterly update is due.

Do I need MTD under £50,000?

Not yet, but you will soon. If your qualifying income is between £30,000 and £50,000, MTD becomes mandatory from April 2027. If it's between £20,000 and £30,000, you'll need to comply from April 2028. Income below £20,000 is not currently in scope, though HMRC may lower the threshold further. Even if you're not required yet, setting up digital records now with August means you're ready when your phase arrives, with no last-minute scramble.

What are MTD late filing penalties?

HMRC uses a points-based system. Each late quarterly update earns you 1 penalty point. Once you reach 4 points, you receive a £200 fine. Points reset after a sustained period of on-time submissions. Crucially, HMRC has confirmed that no penalties will be issued for late quarterly updates during the 2026/27 tax year, giving everyone a grace period while the system beds in. August sends smart reminders before each deadline so you never miss a submission.

Are limited companies exempt from MTD?

Yes. MTD for Income Tax applies to unincorporated landlords, individuals, partnerships, and sole traders who report rental income through Self Assessment. If your rental income flows through a limited company and you pay Corporation Tax, you're not currently required to use MTD for Income Tax. However, MTD for Corporation Tax is expected in future, so keeping digital records is still good practice. August supports individual landlords and Limited Liability Companies, so you can start preparing.

How do I submit MTD quarterly updates?

You submit quarterly updates through MTD-compatible software, like August. you cannot file them on the HMRC website. Each update is a summary of your rental income and allowable expenses for that quarter. With August, the process is straightforward: your income and expenses are already logged digitally throughout the quarter. When the deadline approaches, August compiles the figures, you review the summary, and submit directly to HMRC from the app. The whole process takes a few minutes. You can view your submission history at any time.

What records does MTD require?

Under MTD, you must keep digital records of all rental income received, all allowable expenses paid, details of any assets and liabilities related to your rental business, and mileage logs for property-related travel. Records must be maintained in MTD-compatible software, like August. Paper records, spreadsheets, and the HMRC website don't count. August records all of this automatically as you go. Log expenses from your phone, attach receipt photos, connect your bank for automatic transaction imports, and your digital records stay complete for every quarterly update to HMRC.

How does MTD work for joint ownership?

Each co-owner is treated as a separate taxpayer under MTD. If you own a property 50/50 with your spouse, each of you reports your 50% share of the rental income and expenses in your own quarterly updates. Both owners need to register for MTD individually and use their own MTD-compatible software. August supports shared ownership, set your ownership percentage when adding a property, and August calculates your share of every transaction automatically. This works for any split, not just 50/50.

What is the MTD Final Declaration?

The Final Declaration replaces your annual Self Assessment tax return. It's filed after the end of the tax year (5 April) and is due by 31 January of the following year, the same deadline as the old Self Assessment return. In the Final Declaration, you confirm your total income and expenses for the year, make any adjustments, and finalise your tax position. August guides you through the Final Declaration process step by step. Read the full guide on how to file your Final Declaration.

FAQ

Got questions?

We've got answers

Answers to the most common questions from Landlords and Tenants using August.

Frequently asked questions about Making Tax Digital

When does MTD start for landlords?

Making Tax Digital for Income Tax starts on 6 April 2026 for landlords and sole traders with qualifying income over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Qualifying income means your total gross rental income plus any self-employment income before expenses. If you're unsure which phase applies to you, use the MTD calculator to check your estimated start date. August helps landlords in every phase get set up before their first quarterly update is due.

Do I need MTD under £50,000?

Not yet, but you will soon. If your qualifying income is between £30,000 and £50,000, MTD becomes mandatory from April 2027. If it's between £20,000 and £30,000, you'll need to comply from April 2028. Income below £20,000 is not currently in scope, though HMRC may lower the threshold further. Even if you're not required yet, setting up digital records now with August means you're ready when your phase arrives, with no last-minute scramble.

What are MTD late filing penalties?

HMRC uses a points-based system. Each late quarterly update earns you 1 penalty point. Once you reach 4 points, you receive a £200 fine. Points reset after a sustained period of on-time submissions. Crucially, HMRC has confirmed that no penalties will be issued for late quarterly updates during the 2026/27 tax year, giving everyone a grace period while the system beds in. August sends smart reminders before each deadline so you never miss a submission.

Are limited companies exempt from MTD?

Yes. MTD for Income Tax applies to unincorporated landlords, individuals, partnerships, and sole traders who report rental income through Self Assessment. If your rental income flows through a limited company and you pay Corporation Tax, you're not currently required to use MTD for Income Tax. However, MTD for Corporation Tax is expected in future, so keeping digital records is still good practice. August supports individual landlords and Limited Liability Companies, so you can start preparing.

How do I submit MTD quarterly updates?

You submit quarterly updates through MTD-compatible software, like August. you cannot file them on the HMRC website. Each update is a summary of your rental income and allowable expenses for that quarter. With August, the process is straightforward: your income and expenses are already logged digitally throughout the quarter. When the deadline approaches, August compiles the figures, you review the summary, and submit directly to HMRC from the app. The whole process takes a few minutes. You can view your submission history at any time.

What records does MTD require?

Under MTD, you must keep digital records of all rental income received, all allowable expenses paid, details of any assets and liabilities related to your rental business, and mileage logs for property-related travel. Records must be maintained in MTD-compatible software, like August. Paper records, spreadsheets, and the HMRC website don't count. August records all of this automatically as you go. Log expenses from your phone, attach receipt photos, connect your bank for automatic transaction imports, and your digital records stay complete for every quarterly update to HMRC.

How does MTD work for joint ownership?

Each co-owner is treated as a separate taxpayer under MTD. If you own a property 50/50 with your spouse, each of you reports your 50% share of the rental income and expenses in your own quarterly updates. Both owners need to register for MTD individually and use their own MTD-compatible software. August supports shared ownership, set your ownership percentage when adding a property, and August calculates your share of every transaction automatically. This works for any split, not just 50/50.

What is the MTD Final Declaration?

The Final Declaration replaces your annual Self Assessment tax return. It's filed after the end of the tax year (5 April) and is due by 31 January of the following year, the same deadline as the old Self Assessment return. In the Final Declaration, you confirm your total income and expenses for the year, make any adjustments, and finalise your tax position. August guides you through the Final Declaration process step by step. Read the full guide on how to file your Final Declaration.

FAQ

Got questions?

We've got answers

Answers to the most common questions from Landlords and Tenants using August.

Frequently asked questions about Making Tax Digital

When does MTD start for landlords?

Making Tax Digital for Income Tax starts on 6 April 2026 for landlords and sole traders with qualifying income over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. Qualifying income means your total gross rental income plus any self-employment income before expenses. If you're unsure which phase applies to you, use the MTD calculator to check your estimated start date. August helps landlords in every phase get set up before their first quarterly update is due.

Do I need MTD under £50,000?

Not yet, but you will soon. If your qualifying income is between £30,000 and £50,000, MTD becomes mandatory from April 2027. If it's between £20,000 and £30,000, you'll need to comply from April 2028. Income below £20,000 is not currently in scope, though HMRC may lower the threshold further. Even if you're not required yet, setting up digital records now with August means you're ready when your phase arrives, with no last-minute scramble.

What are MTD late filing penalties?

HMRC uses a points-based system. Each late quarterly update earns you 1 penalty point. Once you reach 4 points, you receive a £200 fine. Points reset after a sustained period of on-time submissions. Crucially, HMRC has confirmed that no penalties will be issued for late quarterly updates during the 2026/27 tax year, giving everyone a grace period while the system beds in. August sends smart reminders before each deadline so you never miss a submission.

Are limited companies exempt from MTD?

Yes. MTD for Income Tax applies to unincorporated landlords, individuals, partnerships, and sole traders who report rental income through Self Assessment. If your rental income flows through a limited company and you pay Corporation Tax, you're not currently required to use MTD for Income Tax. However, MTD for Corporation Tax is expected in future, so keeping digital records is still good practice. August supports individual landlords and Limited Liability Companies, so you can start preparing.

How do I submit MTD quarterly updates?

You submit quarterly updates through MTD-compatible software, like August. you cannot file them on the HMRC website. Each update is a summary of your rental income and allowable expenses for that quarter. With August, the process is straightforward: your income and expenses are already logged digitally throughout the quarter. When the deadline approaches, August compiles the figures, you review the summary, and submit directly to HMRC from the app. The whole process takes a few minutes. You can view your submission history at any time.

What records does MTD require?

Under MTD, you must keep digital records of all rental income received, all allowable expenses paid, details of any assets and liabilities related to your rental business, and mileage logs for property-related travel. Records must be maintained in MTD-compatible software, like August. Paper records, spreadsheets, and the HMRC website don't count. August records all of this automatically as you go. Log expenses from your phone, attach receipt photos, connect your bank for automatic transaction imports, and your digital records stay complete for every quarterly update to HMRC.

How does MTD work for joint ownership?

Each co-owner is treated as a separate taxpayer under MTD. If you own a property 50/50 with your spouse, each of you reports your 50% share of the rental income and expenses in your own quarterly updates. Both owners need to register for MTD individually and use their own MTD-compatible software. August supports shared ownership, set your ownership percentage when adding a property, and August calculates your share of every transaction automatically. This works for any split, not just 50/50.

What is the MTD Final Declaration?

The Final Declaration replaces your annual Self Assessment tax return. It's filed after the end of the tax year (5 April) and is due by 31 January of the following year, the same deadline as the old Self Assessment return. In the Final Declaration, you confirm your total income and expenses for the year, make any adjustments, and finalise your tax position. August guides you through the Final Declaration process step by step. Read the full guide on how to file your Final Declaration.

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Landlord briefing in your inbox

Bite-size rental updates for UK landlords, Practical advice, ready-to-use templates, unsubscribe anytime.

By continuing you agree to our Privacy Policy

Stay in the loop

Landlord briefing in your inbox

Bite-size rental updates for UK landlords, Practical advice, ready-to-use templates, unsubscribe anytime.

By continuing you agree to our Privacy Policy

Making Tax Digital for Landlords: Your Complete Guide for 2026

Making Tax Digital for Landlords: Your Complete Guide for 2026

What Is Making Tax Digital for Income Tax?

What Is Making Tax Digital for Income Tax?

What Is Making Tax Digital for Income Tax?

What MTD Means for UK Landlords. Quarterly Updates, Digital Records and New Obligations

What MTD Means for UK Landlords. Quarterly Updates, Digital Records and New Obligations

What MTD Means for UK Landlords. Quarterly Updates, Digital Records and New Obligations

actually means

actually means

What's new

4 quarterly updates to HMRC (instead of nothing until January)

You'll need MTD-compatible software, can't use the HMRC website

Digital records must be kept throughout the year

A Final Declaration replaces your Self Assessment return

5 submissions per year in total (4 quarterly + 1 final)

What stays the same

Tax payment dates don't change (31 Jan and 31 Jul)

Tax payment dates don't change (31 Jan and 31 Jul)

You're not paying tax more often, just reporting more often

You're not paying tax more often, just reporting more often

The Final Declaration deadline is still 31 January

The Final Declaration deadline is still 31 January

Your accountant can still handle submissions for you

Your accountant can still handle submissions for you

The same expenses are allowable as before

The same expenses are allowable as before

More admin? Yes. But it doesn't have to be painful.

Q3

Final Declaration

When Does Making Tax Digital Start for Landlords?

When Does Making Tax Digital Start for Landlords?

When Does Making Tax Digital Start for Landlords?

Phase 1:

Landlords earning £50,000+

Phase 2:

Landlords earning £30,000+

Phase 3:

Landlords earning £20,000+

Worth knowing:

Do the New MTD Rules Apply to You?

Do the New MTD Rules Apply to You?

Do the New MTD Rules Apply to You?

How to Prepare for Making Tax Digital as a UK Landlord

How to Prepare for Making Tax Digital as a UK Landlord

How to Prepare for Making Tax Digital as a UK Landlord

Work out your qualifying income

Set up a Government Gateway account

Choose MTD-compatible software

Sign up for MTD on GOV.UK

Consider a dedicated bank account

Start keeping digital records now

Work out your qualifying income

Set up a Government Gateway account

Choose MTD-compatible software

Sign up for MTD on GOV.UK

Consider a dedicated bank account

Start keeping digital records now

Estimate your MTD start date

Estimate your MTD start date

Estimate your MTD start date

New to Self Assessment?

MTD Complete Guide

MTD Penalties for Late Submissions. What Landlords Need to Know

What to record digitally

All rental income received

Allowable expenses paid

Details of assets and liabilities

Mileage logs for property-related travel

Bank statements and transaction records

Late submission penalties

You get 1 point per late quarterly update

£200 fine once you hit 4 points

Points expire after compliant filing

No penalties

for late quarterly updates in your first year on MTD (2026/27). HMRC is giving everyone time to adjust.

Get ahead of it, not caught out by it

Get ahead of it, not caught out by it

Get ahead of it, not caught out by it

More Landlord Software Features from August

More admin? Yes.
But it doesn't have to be painful.