Another tax headache for landlords is looming

Heather Powell, Head of Property says:

Under the MTD regime, landlords with a gross rental income of £50,000 or more (£4,167 per month) in the year to 5 April 25 will be required to report their income, and expenditure, on quarterly tax filings from April 2026, with the first filing due by 7 August 2026. Filings will only be possible via commercial software that a landlord has to purchase, or their accountant.

From April 27 Landlords with gross rents of £30,000 per annum will join the reporting regime, and from April 28 landlords with gross rents of £20,000 – £1,667 per month, will join the regime.

With these thresholds almost all buy to let landlords will be filing quarterly returns detailing their rents and expenses from April 28. They will need to purchase the commercial software essential to make the filings, or pay someone to do file for them.

The additional MTD reporting will not change the actual tax liabilities, or the payment dates on which income tax has to be paid. The returns for buy to let investors, particularly those with less than three properties, are going to be significantly impacted by this new regime. It is likely to be the final nail in the coffin for many.

Heather added:

Investors, especially those who purchased a buy to let property to supplement their pension may feel that the administrative burdens now associated with the investment and reduced profits, make it the right time to sell up. This will mean more homes for those who can afford to buy, but a problem for those who need to rent as the number of homes available for reduces, especially in London and the South East.

Would you like to know more

If you would like to discuss any of the above, please speak to your usual Blick Rothenberg contact or Heather Powell using the form below.