Making Tax Digital: what Brighton businesses and landlords need to do now

Making Tax Digital (MTD) is HMRC's programme to modernise the UK tax system, moving from annual paper-based reporting to digital, quarterly submissions. For the self-employed and landlords, it is coming — and faster than many people realise.

The MTD timeline you need to know

Qualifying income means gross income from self-employment and/or property combined — before any expenses.

What will you actually need to do?

• Keep digital records using MTD-compatible software
• Submit quarterly summaries of income and expenses to HMRC — four times per year
• Submit a final end-of-year declaration confirming the full year's figures

Compatible software

Popular MTD-compatible options include Xero, QuickBooks, FreeAgent, and Sage. Fitzpatrick Co sets all clients up on appropriate software as part of our onboarding process — so if you become a client now, you will be ready well in advance of the deadline.

Brighton landlords — do you qualify?

If you receive gross rental income of over £50,000 (from April 2026) or £30,000 (from April 2027), MTD applies to you. Note this is gross income — not profit — so a portfolio with two or three Brighton properties will likely qualify even after mortgage costs.

What if you do nothing?

Failing to comply with MTD requirements after the mandatory date will result in penalties under HMRC's points-based penalty system. Each late or missed submission earns a penalty point — once a threshold is reached, a financial penalty is charged.