A team of award-winning accountants is helping landlords across Northamptonshire to meet the demands of Making Tax Digital.
The way landlords report their income and expenditure is changing from April 2026 when Making Tax Digital for Income Tax Self-Assessment comes into effect as part of the UK government’s drive to modernise the tax system.
With April’s deadline looming, Rushden-based accountancy firm Elsby & Co has learned through its relationships with letting agents that many landlords are unsure about what they need to do to comply with the change.
Elsby & Co Senior Client Manager Carina Benzie said: “Making Tax Digital is part of changes being made by the government to modernise the tax collection system and it affects landlords and small businesses.
“Landlords who fall under the scheme’s remit will have to use government-approved software that is compatible with Making Tax Digital to submit digital tax returns to HMRC.
“They will have to submit quarterly updates, rather than just the annual return that is standard at present, and an additional final declaration which includes non-business income and allows them to claim any allowances or reliefs.
“Through our discussions with letting agents we’ve learned that many landlords have little awareness of this change or, if they’re aware, they’re unsure what it means for them.
“To support local businesses, we’re offering free advice and education to landlords so they can get to grips with this new system and avoid penalties for late tax filing.”
Eventually all sole-trader landlords who earn more than £20,000 a year – from property and self-employment income – and pay tax via Self-Assessment will be affected.
From 2026, landlords with an annual property income of £50,000 or more in the 2024-2025 tax year must comply with Making Tax Digital.
This will be extended in 2027 to include landlords earning £30,000 or more annually and in 2028 it is due to apply to landlords with an income of £20,000 or more a year.
Limited company landlords are not affected by Making Tax Digital and will continue to pay corporation tax.
To help landlords, Elsby & Co’s team has been attending letting agents’ events for landlords to raise their awareness about Making Tax Digital. It has also produced flyers about its services for letting agents to include in their information packs for landlords.
One of the letting agents it is working with is Prime Choice Letting & Estate Agents based in Rushden.
Director Amaniel Ghile said: “Making Tax Digital will be one of the biggest changes landlords have faced in recent years, and many are still unaware of just how soon the new rules take effect.
“It’s not just about meeting the deadlines, it’s about having the right systems, knowledge and support in place, so nothing falls through the cracks.
“By partnering with Elsby & Co, we can give our landlords confidence that they’re fully compliant, their records are accurate, and they have clear guidance at every stage. That peace of mind means they can focus on running their properties successfully while we help them navigate the new requirements with ease.”
Elsby & Co is also inviting landlords to contact its team if they want access to a free pre-recorded educational Making Tax Digital webinar for landlords which it plans to release this autumn.
Carina Benzie said: “We want to help make the transition process easier for landlords and can show them how these changes can help them to gain better control over their finances.
“By working with us now landlords can ensure they stay compliant and thrive in the digital age – the earlier they’re prepared for the changes, the smoother the transition will be.
“On this note, we’d urge landlords who complete Self-Assessments to do them early. When and whether landlords are included in the remit for Making Tax Digital depends on their levels of income. This is based on the turnover from their total rental income and their self-employment income, if they have one. The sooner landlords prepare their Self-Assessments, the sooner they’ll know if they qualify for Making Tax Digital.”
Elsby’s expert team can also help organisations to select and set-up the right Making Tax Digital-compatible accounting software for their business and is training businesses to use the new systems.
Landlords and other small businesses that want to find out more about Elsby’s services and how its team can help them with Making Tax Digital should contact the Elsby team.
Find out more on 0330 053 9189, email help@elsbyandco.co.uk or visit www.elsbyandco.co.uk
