If you’re a landlord - whether it’s your full-time gig or just a side hustle - 2025 will be an important year for staying ahead of the tax game.
Big changes are coming in 2026, but there’s a lot you can do right now to make your life easier and more profitable.
Let’s break it down:
1. What’s Changing in 2026 (and why you should care now)
From April 2026, Making Tax Digital for Income Tax (MTD for ITSA) comes into force for landlords with rental income over £50,000**.
**Or if your combined sole trader and rental income exceeds this amount.
Here’s what that means in plain English:
- No more scribbled notes or scraps of paper
- You’ll need to use HMRC-approved software (such as Xero - our preferred software option)
- You’ll be submitting updates to HMRC every quarter, not just once a year
If your income falls between £30,000 and £50,000, the same rules will apply from April 2027, and if your income exceeds £20,000, HMRC have just confirmed this will apply from April 2028.
So why start thinking about it now?
Because moving to digital tools takes time, and doing it in a rush usually means stress, mistakes, or both. If you’ve never used software to manage your rental finances before, don’t worry - we’re already helping clients make the switch, step by step.
2. What Can You Actually Claim as a Landlord?
A lot of landlords we speak to don’t realise just how many expenses they can claim - or they’re worried they’ll “get it wrong.”
Here are some common allowable expenses you can claim (as long as they’re solely related to your rental business):
- Letting agent or property management fees
- Mortgage interest (you may not get full relief, but you can still claim some tax deductions)
- Repairs and maintenance (think boiler fixes, not improvements)
- Council tax and utility bills - if you pay them
- Accountancy fees
- Even a home office allowance, if you manage things yourself
The key thing? Keep your records organised. That’s where digital tools (and a good accountant!) make a huge difference.
3. Why It’s Worth Going Digital Before You Have To
Let’s be honest - most people don’t get excited about accounting software. But the benefits are real.
When you switch to digital tools now, you:
- Stay ahead of HMRC deadlines
- Reduce the chance of errors or missed claims
- See your income and expenses clearly, in real time
- Spend less time stressing over spreadsheets or receipts
Some landlords have told us they actually enjoy using the apps we’ve set them up with. We wouldn’t go quite that far - but we do know it makes life simpler.
How We’re Helping Landlords Prepare
We’ve already been working with a number of landlords locally to:
- Choose the right software (based on your needs and tech confidence)
- Get your records up to date
- Claim everything you’re entitled to
- And most importantly, get ahead of MTD before it becomes a panic
Whether you’ve got one buy-to-let or a growing portfolio, we’ll guide you through it with no jargon, no drama, and a clear plan.
Ready to feel more in control?
Need help getting your records digital-ready?
Want to make sure you’re claiming what you should?
Or just have a few questions about what MTD means for you?
We’d love to help. Get in touch here to get the ball rolling.