Just six months remain until the rollout of Making Tax Digital (MTD) for Income Tax—set to affect landlords earning over £50,000. The countdown to this contentious reform officially began yesterday, intensifying pressure on property owners to prepare for the shift to digital reporting.

Craig Ogilvie the MTD director states: “Tax is changing and with just six months until Making Tax Digital for Income Tax comes into effect, now’s the time to start preparing. 

“MTD is about spreading your tax admin throughout the year instead of that January scramble to complete your Self-Assessment return. 

“There are free software options available, and early feedback from our testing participants shows the system is straightforward once you are familiar with it.”

He encourages landlords to join HMRC’s pilot scheme, describing it as a valuable opportunity to get familiar with the new digital tax system ahead of its mandatory rollout. 

Participants also gain access to HMRC’s dedicated support team, which he likens to a “safety net” during the transition.

He clarifies that the new rules won’t mean more tax returns. Instead, landlords will submit quarterly summaries—automatically generated by compatible software—making the process streamlined and low-effort.

He says: “If you spot an error, you can fix it in the next update. More than 2,000 updates have been successfully submitted in the testing programme and feedback from those involved has been. encouragingly positive” 

Ogilvie tells landlords will need to use compatible software but says: “There are free options as well as ones you have to pay for. There isn’t a one size fits all – the key is finding which software works for your business. The software will give you real-time estimates of your tax bill throughout the year, helping with cash flow planning and avoiding nasty January surprises.”

He adds that landlords already using spreadsheets or accounting tools won’t need to start from scratch. Compatible software is available that links directly to existing records, ensuring compliance with the new digital tax rules without disrupting current workflows.