Making Tax Digital for Income Tax is the biggest change to UK property tax in a generation. Here is what it means, and how PROXERA keeps you ready.
Everything you need to know about Making Tax Digital for Income Tax: what it means, who it affects, and how Proxera makes compliance effortless.
MTD is live from 6 April 2026. Landlords earning £50k+ gross rental income must use MTD software now. Proxera is fully MTD-ready.
Making Tax Digital (MTD) for Income Tax Self Assessment is HMRC's initiative to modernise the UK tax system. From April 2026, landlords and self-employed individuals earning above the income threshold must keep digital records and submit quarterly updates directly to HMRC.
This replaces the traditional annual Self Assessment tax return for those within scope. MTD means more frequent, more accurate reporting, and less room for costly errors at year end.
Gross income = total rent received before any deductions or expenses. A landlord earning £52,000 in rent with £40,000 in costs is within scope from April 2026.
Under MTD you must submit four quarterly updates per tax year, plus an end-of-period statement and a final declaration. The quarterly deadlines are:
HMRC uses a points-based penalty system. Each missed quarterly submission earns one penalty point. At four points you receive a £200 penalty. Further penalties apply for persistent failure and for late payment of tax owed.
You must use MTD-compatible software that connects directly to HMRC's systems. Spreadsheets are not compliant on their own. Proxera is fully MTD-ready, it connects your bank accounts via Open Banking, categorises income and expenses automatically, and submits directly to HMRC each quarter.
Proxera handles everything, digital records, quarterly submissions, direct HMRC integration. Get started below.
PROXERA keeps your records current and your submissions ready, all year round.
Get MTD ready