Only landlords with property incomes over £30,000 will now need to comply with HMRC's looming Making Tax Digital (MTD) rules, while those with incomes under £30,000 will not be mandated to use the scheme until a review has been completed.
Even for landlords with larger incomes from property, HMRC says it realises that they face a greater task to comply with the MTD given the 'challenging economic circumstances'.
The dates for the introduction of MTD are now different depending on personal or business property income.
From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software.
Those with an income of between £30,000 and £50,000 will need to do this from April 2027.
Victoria Atkins (main image), Financial Secretary to the Treasury, says: 'It is right to take the time to work together to maximise the benefits of Making Tax Digital for small businesses by implementing the change gradually.
'It is important to ensure this works for everyone: taxpayers, tax agents, software developers, as well as HMRC.
'Smaller businesses in particular should be able to experience the benefits of increased digitalisation of Income Tax in a way which meets their needs. That is why we are also today announcing a review to establish the best way to achieve this.'