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HMRC restarts landlord pilots for its 'Making Tax Digital' scheme

making tax digital

More landlords can now try out Making Tax Digital (MTD) for Income Tax after HMRC paused the pilot last February.

Ahead of the 2026/27 launch, landlords can voluntarily allow their compatible software to transmit accounting data to HMRC every three months.

Those interested need to sign up before June however, they can’t volunteer where they have partnership income, trust income, High-Income Child Benefit Charge, jointly owned property, HMRC debt or payment arrangements, bankruptcy/individual voluntary arrangements or if they are claiming blind persons’ allowance or marriage allowance.

Pilot scheme

Data reveals that in the three years since the pilot scheme began, 1,015 people have participated, and of these, only 218 are landlords with property income.

APARI has worked with clients using its digital accounting software in the pilot for the last few years.

Chief product officer Anish Mehta is confident that its systems are working for landlords and says HMRC’s MTD programme is now in better shape - although there is political uncertainty around whether a new government will stick with the current design, implementation and requirements.

“Digital record-keeping isn’t going away, whatever government there is, and has benefits” he tells LandlordZONE.

Digital records

“Landlords with capital might ask themselves whether they should pay down their BTL mortgage or put it in a pension. If they have up to date digital records, they can make those decisions before 5th April, but if they do it retrospectively, they will have lost the opportunity. Getting software – which can pull income and expenses from your bank account and give real-time tax calculations – is a good start.”

MTD for Income Tax will be mandatory from April 2026 for self-employed businesses and landlords with business turnover above £50,000 and from April 2027 for those with business turnover above £30,000.


Making tax digital