At Hammock we work with leading practices in the UK, from top 100 firms to sole practitioners, gaining daily insights into the challenges and opportunities that landlords and their accountants face.
In this article, we break down what’s changing, when it’s happening, and what steps you can take now to help your staff and landlord clients prepare for MTD.
In this article, we break down what’s changing, when it’s happening, and what steps you can take now to help your staff and landlord clients prepare for MTD.
The MTD for income tax schedule
The rollout is being phased in by income threshold as reported on the 2024/25 return:
- From April 2026: landlords and sole traders with total gross income of £50,000 and over
- From April 2027: those with total gross income of £30,000 and over
- From April 2028: those with total gross income of £20,000 and over
These thresholds are based on gross income, not profit. If a landlord earns £20,000 or more in rental income combined with any income from sole trader activities—regardless of expenses or tax liability—they’ll fall within the scope of MTD from their relevant start date.
What changes for landlords
From their MTD start date, affected landlords will need to:
Submit updates every quarter
This means sending HMRC a digital summary of income and expenses four times a year, using MTD-compatible software.
Submit a Final Declaration at year end
At the end of the tax year, landlords will need to submit a Final Return. This replaces the traditional Self Assessment tax return and confirms all income, reliefs and adjustments for the year.
Keep digital records
Paper receipts and spreadsheets won’t be enough on their own. The use of spreadsheets, either to record individual transactions or as part of a suite of software and spreadsheets will be permitted for record keeping. However, there will be a requirement to use MTD compatible software to submit the filings to HMRC.
Top tip: Get your landlord clients on the learning curve now. Introduce them to the new digital processes as soon as possible. Moving away from spreadsheets and manual processes will require time, as landlords will have to get used to new ways of working and solutions.
What it means for your practice
More contact, more often
Quarterly submissions mean more frequent interactions with clients. That creates opportunities for ongoing advisory work—but it also increases the admin burden. Keep in mind that UK landlords will be looking for solutions that go beyond the MTD requirements to help them improve the performance of their property investment.
Choosing the right software
Clients will need MTD-compatible solutions that support landlord-specific accounting. You'll need to guide them through setup and usage, and ensure it integrates with your existing systems. When evaluating software solutions, prioritise those with easy set up and excellent ongoing customer support. At Hammock, we run weekly training sessions to share top tips with landlords and answer their questions in real-time (These sessions are live, not recorded).
Educating your staff
Help your staff master the fundamentals of MTD. This will give them the confidence to offer the appropriate guidance to your landlord clients on the path to MTD go-live. The Hammock guide to MTD summarises the key points to consider for UK accountants.
Reviewing your workflows
With deadlines every three months, your team will need robust processes to manage submissions at scale. That includes automated workflows, clear task management and consistent client communication.
Engaging landlord clients
Many landlords still don’t know what MTD is - or that it applies to them. You’ll need to get ahead of that curve with clear, confident messaging and hands-on support.
Top tip: Expect landlords to operate with hybrid models of both ownership and tenancies. A single landlord will have some properties in their own name, others jointly owned with their spouse and potentially others owned through a limited company (which will have to be managed outside of MTD - MTD only applies to the Self Assessment tax regime). Some of these properties will be let on standard tenancy agreements, others will be HMOs or seasonally managed as furnished holiday lets. Make sure to equip your practice with processes and software solutions suitable for any combination of ownership and tenancy. Hammock caters for all ownership structures and tenancies.
How to prepare your landlord clients
Here’s how you can help your clients get ready:
- Segment your client base – identify which clients are affected in 2026, 2027 and 2028.
- Build scalable workflows – prepare your internal systems for quarterly reporting and automate where possible.
- Introduce the right platform – choose a solution built for landlords and fully MTD-compliant (Hammock is the first landlord software recognised by HMRC).
- Invite the landlords onto the software – so they can familiarise themselves with the new processes.
- Educate and support – use newsletters, webinars or checklists to bring clients up to speed.
- Consider enrolling some clients on the MTD pilot programme – to test your processes and reduce the learning curve ahead of full rollout.
Top tip: Do not underestimate the cost of running different processes for different clients. As you segment your client base, consider the time savings and efficiency achievable by managing all landlord clients with the same processes, beyond MTD requirements.
Exemptions and digital exclusion
Some landlords may not need to comply with MTD income tax if they qualify for an exemption on the grounds of digital exclusion. This could apply in cases where it’s not reasonably practical to use digital software due to age, disability, location or religion.
However, exemptions are not automatic - applications must be submitted to HMRC and receive approval. To learn more, read the HMRC guidance.
How Hammock can help prepare for landlord MTD
Hammock is the first landlord software recognised by HMRC as compatible with MTD. It helps you and your practice:
- Keep digital records effortlessly
- Prepare and submit quarterly MTD updates
- Collaborate with clients in real time
- Monitor property income, expenses and profitability
- Manage multiple landlord clients from a single dashboard
With live bank feeds, accurate categorisation and full MTD compatibility, Hammock offers a comprehensive, scalable solution for all your landlord clients. Learn more on the Hammock website.
MTD can help you grow your practice
MTD income tax is a major shift in how property income is reported—and accountants will play a key role in helping landlords and sole traders comply.
It’s not just about ticking the compliance boxes. With the right platform in place, you can offer more proactive support, build stronger client relationships and open up new revenue streams from digital advisory work.
Want to see how Hammock can help your firm get MTD-ready? Book a demo today.
