Property income and Making Tax Digital: what Brighton landlords need to know for 2026

If you own rental property in Brighton and Hove, 2026 is a year you cannot afford to ignore. Making Tax Digital for Income Tax (MTD for IT) went live on 6 April 2026 — and landlords are squarely in scope.

Brighton has one of the most active private rental markets in the South East. Many landlords with two or three properties will already be above the initial threshold. Here is what is happening and what you need to do about it.

Do you qualify for MTD?

The threshold is based on your qualifying income — which for landlords means gross rental income before expenses. If your gross rental receipts exceeded £50,000 in the 2024/25 tax year, you are required to comply from April 2026.

Note that qualifying income is combined self-employment and property income. If you also have self-employment income, the two figures are added together when calculating your threshold position.

What do Brighton landlords actually need to do?

• Choose MTD-compatible software — Xero and QuickBooks both handle rental income well
• Start keeping digital records of all rental income and allowable expenses throughout the year
• Register for MTD for Income Tax with HMRC (your accountant can handle this)
• Submit quarterly updates — four per year covering your income and expenses
• File a final end-of-year declaration replacing your current Self Assessment return

Brighton rental income — the numbers

With average Brighton rents well above the national average, it takes fewer properties than many landlords assume to breach the £50,000 gross income threshold. A portfolio of two average two-bedroom flats in Brighton could comfortably exceed £50,000 in gross rents per year. From April 2027, even a single well-located flat let at market rate may bring a landlord into scope at the £30,000 threshold.

What about the property tax changes from April 2027?

Separate from MTD, the Autumn 2024 Budget confirmed new income tax rates on property income and changes to capital gains tax from April 2027. These are significant and warrant a separate planning conversation. If you have not already reviewed your portfolio structure in light of these changes, now is the time.

Furnished holiday lets

The furnished holiday let (FHL) tax regime was abolished from April 2025. If you previously benefited from FHL status — lower capital gains rates, pension contribution relief — you will need to review your position. Income from former FHLs is now treated as ordinary property income for all purposes, including MTD thresholds.