MTD Readiness Checklist

Are you ready for Making Tax Digital? Work through this checklist to assess your compliance status and identify any gaps.

MTD Compliance Checklist

• ✓Confirm whether your gross property income exceeds the £50,000 Making Tax Digital threshold for 2026.
• ✓Choose HMRC-recognised MTD software that can submit directly via the MTD API.
• ✓Keep digital records of all your rental income and property expenses, no more paper or manual spreadsheets.
• ✓Connect your bank via read-only Open Banking so income and expenses are captured automatically.
• ✓Know your four quarterly submission deadlines for the 2026/27 tax year, plus your year-end deadline.
• ✓Keep digital copies of receipts, invoices and statements to back up every figure you submit.
• ✓Review your income and expense figures before each quarterly submission to HMRC.
• ✓Have a plan for the threshold dropping to £30,000, and then £20,000, in the phases that follow.

What each item means

MTD software

Not all property management tools are MTD-ready. You must use software that has gone through HMRC's recognition process and can submit directly via the MTD API. Proxera is fully MTD-ready.

Digital records

Digital records means your income and expense data must exist in a digital format, not reconstructed from bank statements at year end. Open Banking integration is the most efficient way to ensure this.

Quarterly deadlines

Missing a quarterly deadline earns a penalty point. At four points, a £200 fine applies. The submission window is tight, automated software removes the deadline risk entirely.

Not fully compliant yet?