Making Tax Digital for Landlords in Rugby: Everything You Need to Know Before April 2026

From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) becomes mandatory for thousands of landlords across Rugby and Warwickshire. If your property income is above £50,000, HMRC will expect you to follow stricter digital rules—moving away from spreadsheets and once‑a‑year tax returns.

Here’s what landlords need to know, and how Redwood Accountants can help you get ready.

Who Does MTD for ITSA Apply To?

You’ll need to comply if you have:

• £50,000+ in gross rental income from April 2026
• £30,000–£50,000 from April 2027
• Multiple properties (combined income counts)
• UK or overseas income (still included)

Partnerships and limited companies are not included yet, but HMRC has signalled they may follow later.

What Will Landlords Need to Do?

Under MTD you must:

✔ Keep digital records of rental income and expenses
✔ Submit quarterly updates to HMRC
✔ Submit an annual “End of Period Statement”
✔ Use MTD‑compatible software (Xero, QuickBooks, FreeAgent)

Handwritten notes and Excel alone won’t be acceptable.

What Counts as Digital Records?

You’ll need to log:

• Monthly rent receipts
• Repairs & maintenance
• Mortgage interest
• Service charges
• Agent fees
• Insurance costs

Most landlords will benefit from linking their bank feeds to software for automated tracking.

Why This Matters Now

Waiting until 2026 will be risky - software transitions take time, and HMRC penalties for mistakes will apply. Early adoption helps you:

• Avoid stressful last‑minute changes
• Understand your cash flow better
• Catch up on missing expenses sooner
• Reduce your tax bill with cleaner records

How Redwood Accountants Can Help

We support landlords across Rugby and Warwickshire with:

✔ MTD-ready cloud software
✔ Quarterly submissions
✔ Digital record‑keeping setup
✔ Tax optimisation for property portfolios

Final Thoughts

MTD for landlords is a big shift - but if you prepare early, it can make managing your rental business far easier.

Get in touch with Redwood Accountants to get MTD‑ready before the rush.

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