Making Tax Digital for Brighton landlords: what you need to know

Making Tax Digital for Income Tax (MTD for IT) is the biggest change to self-assessment in a generation. For Brighton landlords, it means the way you report rental income to HMRC is changing fundamentally — and the clock is ticking.

This guide covers who is affected, what the new rules actually require, and what you need to do before the deadlines hit.

Who does MTD for Income Tax affect?

MTD for Income Tax applies to anyone with qualifying income above certain thresholds. For landlords, qualifying income includes:

• Rental income from UK property
• Income from self-employment (if you also run a business)

The thresholds are being introduced in stages:

• April 2026: Total qualifying income over £50,000
• April 2027: Total qualifying income over £30,000
• April 2028: Total qualifying income over £20,000 (expected)

What does MTD actually require landlords to do?

Under the current Self Assessment system, you file one tax return per year — usually by 31 January following the end of the tax year. MTD for Income Tax changes this entirely.

From your MTD start date, you will need to:

• Keep digital records of all rental income and allowable expenses throughout the year
• Submit quarterly updates to HMRC — four times a year, summarising your income and expenses for that quarter
• Submit a final declaration at the end of the tax year confirming your total income, claiming any reliefs, and finalising your tax position

The quarterly deadlines fall one month after each quarter end — so 5 August, 5 November, 5 February, and 5 May.

What counts as allowable expenses for Brighton landlords?

Nothing changes on what you can claim — only the frequency of reporting changes. Allowable expenses for buy-to-let property continue to include:

• Mortgage interest (subject to Section 24 restrictions — you claim a 20% tax credit, not full relief)
• Letting agent fees
• Property maintenance and repairs (not improvements)
• Buildings and contents insurance
• Ground rent and service charges
• Accountancy fees
• Council tax and utility bills you pay as landlord

Capital expenditure — such as extending a property or replacing a kitchen — is treated differently and cannot be claimed as a revenue expense.

Do you need MTD-compatible software?

Yes. HMRC will not accept quarterly submissions through the Government Gateway in the usual way. You must use software that is approved for MTD for Income Tax.

The main options landlords are using include Xero, QuickBooks, FreeAgent, and specialist landlord tools like Hammock. The right choice depends on the size of your portfolio and how hands-on you want to be. See our MTD software guide for Brighton businesses for a full comparison.

What if you have a portfolio of properties?

Each property is tracked separately within your records, but all UK property income is grouped together as a single source for MTD purposes. You do not submit separate quarterly updates per property — you submit one combined quarterly update covering your total UK property income.

If you own property jointly with a spouse or partner, each owner reports their own share separately under their own MTD obligations.

How Fitzpatrick Co handles MTD for Brighton landlords

We have been preparing landlord clients for MTD since the rules were first announced. For clients on our landlord accounting retainer, we:

• Set up your MTD-compatible software and connect it to your property records
• Review your income and expense records each quarter
• Prepare and submit all four quarterly updates on your behalf
• Handle the year-end final declaration and tax calculation
• Advise on any tax planning opportunities throughout the year — not just at year-end

Monthly retainer from £65. No surprises, no hidden fees.

Frequently asked questions