New research has revealed that 46% of landlords feel “not at all prepared” for Making Tax Digital (MTD), with part-time landlords and those with multiple income streams under pressure.
The survey of UK landlords found that only 16% are feeling fully prepared.
Making Tax Digital will require some landlords to file quarterly updates using digital software from April 2026. With only seven months left until the changes come into force, nearly one in four (24%) landlords said they hadn’t heard of Making Tax Digital at all. A further 48% said they were only vaguely aware of the upcoming tax overhaul.
The research also highlighted that 86% of landlords have other income sources outside of their rental properties. Of those with multiple income streams, over a third (37%) were also in full-time employment, and one in ten (11%) had a part-time job. A quarter have income from pensions (26%) whereas others had income from self-employment (14%) and investments (10%).
When asked about the most challenging aspects of managing their taxes, nearly half (48%) of landlords said they found understanding allowable expenses the most difficult. This was followed by keeping track of financial records, which one in five (22%) struggle with.
Under Making Tax Digital, landlords that meet certain trading and income criteria will need to maintain and report accurate digital accounting records every quarter, along with a final yearly declaration, using MTD for Income Tax-compliant software.
The findings showed scepticism that Making Tax Digital will make financial reporting easier; 46% of landlords felt that it will make the administrative burden of being a landlord more difficult to manage. However, one in ten (13%) felt it would be easier.
When asked which aspects of Making Tax Digital would require the most change from landlords, the most common responses were learning how to stay complaint with new rules (48%), getting used to the new quarterly reporting routines (41%) and finding the right digital accounting solution (31%). Almost a third (30%) expected to struggle with setting time aside to regularly update their records.
“With the clock ticking towards the 2026 deadline, it’s concerning that nearly half of landlords feel completely unprepared for Making Tax Digital,” said Mike Parkes, Technical Director at GoSimpleTax.”
“Most landlords aren’t full-time property professionals — they’re juggling other jobs, freelance income, or pensions. Their rental property is often part of a broader, increasingly complex financial picture, and the shift to regular digital reporting will require many of them to get to grips with new reporting rules and timelines.”
“There’s seven months to go until Making Tax Digital comes into force, so landlords worried about getting to grips with new rules and routines should start preparing now. Making the switch to HMRC-compliant tax and bookkeeping software ahead of the deadline will allow landlords to begin recording their finances more efficiently and with greater accuracy. The sooner this happens, the more months of accounts will be ready in digital format, so landlords can be fully prepared for April 2026.”