MTD for Income Tax - What We're Seeing

As we approach the start of MTD for Income Tax on 6 April 2026, I wanted to share some observations that may be helpful for landlords preparing for the changes.

Software Readiness

We've noticed that some accounting software is still being developed and refined for MTD compliance. One example: a landlord using QuickBooks found that Box 44 (Residential property finance costs - which handles mortgage interest and the 20% tax credit) wasn't mapping correctly. When they contacted the software provider, they were told the system is still in pilot phase and will be updated after 6th April 2026.

What This Means

While digital records need to be kept from 6 April 2026, the first quarterly update isn't due until 7 August 2026. This gives time for software providers to finalise their systems and for users to ensure everything is working correctly.

Important to Remember

MTD for Income Tax is new for everyone - landlords, finance professionals, and software developers. Software providers are still refining their systems, and it's normal for there to be updates and improvements during this transitional period. The key is ensuring your software handles the property-specific calculations correctly (particularly Box 44 for mortgage interest relief) before your first submission in August.

If you're testing your software and finding issues, you're not alone. This is part of the normal preparation process, and most providers are actively working on updates.