A new survey indicates that most landlords are unprepared for Making Tax Digital (MTD), the government’s tax overhaul set to take effect this April. Only one in eight landlords say they understand the new rules, while nearly nine in ten express concern about the changes.
The findings add to growing worries about the potential impact on tenants. Recent research by August found that 97% of landlords plan to increase rents, with compliance and administrative costs cited as key factors.
Under MTD, landlords will be required to submit rental income and expenses to HMRC every three months using approved software. Errors, missed deadlines, or incorrect reporting could result in penalties.
Industry experts warn that landlords who are unprepared may face fines, professional fees, and additional administrative costs – expenses that are often passed on to tenants rather than absorbed.
Samuel Cope, founder of rental app August, warned the changes could push more landlords out of the market and drive rents higher.
He said: “Landlords are under pressure and many don’t yet understand what’s required of them,” he said.
“When landlords are squeezed, tenants feel it, through higher rents, tougher terms and fewer homes to rent.”
From 6 April 2026, sole traders and landlords must use MTD if their total annual income from self-employment and property is over £50,000.
Landlords will need to use software that works with Making Tax Digital for Income Tax to:
+ create, store and correct digital records of your self-employment and property income and expenses
+ send your quarterly updates to HMRC
+ submit your tax return and pay tax due by 31 January the following year
Cope added: “The problem isn’t that landlords don’t want to comply, it’s that the system is too complicated.”
Labour hate private landlords. Simple.
Public too stupid to realise that tenants will pay the price for the enormous increased admin costs and increased personal taxation rates, etc.
Why is there no backlash or representation by landlord trade bodies? What is the membership fee for?
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Labour hate anyone who gets off their a==e and looks after themselves
SCUM
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They want us all gone. Don’t forget the landlord bashing campaign began under the Tories. Of course, Labour’s version is more ruthless. No idea who will house all of the evicted tenants when being a private landlord is no longer viable. The Green party’s plan is that all tenants be allowed to buy their tenancy less rent already paid.
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Crazy isn’t it?
So would the Greens give all customers at a hairdressers the right to buy their salon less all the costs they’ve paid for haircuts over the years? Or their corner shop?
Why not? They are just a business like landlords are? What the hell is the difference? If shelter is a right so is food surely?
As said above by Fromrichmond, landlords are punished for actually starting and running a business that helps citizens. Instead of being self sufficient they’d be better off doing FA, churning out kids and staying on the dole.
Hardly a party for business or growth.
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