Making Tax Digital for Landlords
Sun 01 Feb 2026
Sara Grey, Lettings Manager
HMRC Is Contacting Landlords About Making Tax Digital
As part of its 2026 rollout, HMRC will be writing directly to landlords, sole traders and self-employed individuals between February and March 2026 to explain what Making Tax Digital (MTD) means and what action is required.
If you earn more than £50,000 a year from property income or self-employment, you’ll be included in the first phase of MTD and will need to:
- Use HMRC-approved digital software
- Keep digital records of your income and expenses
- Submit quarterly updates to HMRC (your first one is due by 7 August 2026)
- Continue filing an annual tax return as normal
These awareness letters are being sent between 2–13 February and 16–27 March 2026 - so if you're a landlord within scope, keep an eye on your post. Even if you use a letting agent, you are still responsible for making sure your tax reporting is compliant.
Making Tax Digital for Landlords: What Surrey Property Owners Need to Know
From the historic villages of Shere and Ripley to the bustling lettings market in Woking and Cobham, Surrey landlords are navigating a changing tax landscape. One of the most significant shifts is the UK government's Making Tax Digital (MTD) initiative - and it’s essential for landlords across East Horsley, West Clandon, and beyond to stay ahead. But what is MTD, and what does it mean for landlords in our region?
What is Making Tax Digital?
Making Tax Digital is HMRC's flagship initiative to overhaul the UK tax system. It aims to reduce errors and improve efficiency by mandating digital record-keeping and quarterly online tax submissions through compatible software. For Surrey landlords - whether you let a charming cottage in Peaslake or manage multiple flats in Dorking - MTD represents a move away from traditional annual tax returns and towards more streamlined, real-time reporting.Who Does MTD Apply To?
Landlords with property income over £50,000 must comply with MTD from 6th April 2026. Those earning more than £30,000 annually will follow in April 2027. While landlords below this threshold are exempt for now, the government is reviewing whether smaller landlords should be included later. Even if you use a letting agent to manage properties in Bookham or Esher, you’re still responsible for ensuring accurate digital records and submissions.What You’ll Need
To get MTD-ready, Surrey landlords should:- Switch to HMRC-approved software such as Xero or QuickBooks to log income and expenses.
- Keep digital records of all rent received, repair costs, letting agent fees, and more.
- Submit quarterly updates via the chosen software.
- Test the system early – HMRC allows voluntary participation to identify and resolve issues ahead of mandatory rollout.
Local Considerations
With many Surrey landlords operating high-value rentals, particularly in Cobham and West Horsley, the £50,000 income threshold will impact a substantial portion of property owners here. For those with holiday lets in the Surrey Hills or student housing in Guildford, planning early is key. We recommend reviewing your current record-keeping systems and speaking with a property tax advisor if you’re unsure where to begin.Why MTD is Good News (Yes, Really)
Though initially daunting, MTD has its benefits:- No more year-end scramble.
- Better visibility of your tax obligations throughout the year.
- Fewer errors, meaning fewer HMRC surprises.
- Saves time - once set up, it automates many of your tax tasks.