Beat the 2026 Tax Shake-Up: The Smart Way for Landlords to Go Digital

By Pierce Business Advisory & Accountancy Group

What is Making Tax Digital (MTD)?

As part of the government’s initiative to digitalise and modernise the tax system, from April 2026, landlords will be required to use HMRC-compliant software to record rental income and expenses, and to submit quarterly updates rather than a single annual Self-Assessment.

Will it impact me?

The changes apply to:

Landlords (including individuals, partnerships, and some trusts) with annual property income over £50,000 will fall under MTD rules.
This includes income from residential, commercial, and furnished holiday lets (in the UK or overseas).

How can the Pierce Cloud Accounting team help you?

Assess eligibility
Help you choose the right software
Manage quarterly submissions
Final declaration submission
Provide tax planning & advice
Ongoing support

Should I act now?

Avoid a last-minute rush

When MTD goes live, thousands of landlords will all be trying to switch at once. Starting early means you can test software, get used to it, and avoid mistakes under pressure.

Learn the software at your own pace

MTD-approved platforms can take some time to set up: linking bank accounts, adding properties, and tagging transactions. Doing this now gives you breathing space.

Immediate benefits, not just compliance

Even before MTD is mandatory, digital record-keeping can save time, reduce missed expenses, and give real-time insights into property profitability.
You’ll know instantly which tenants are in arrears, what your rental yield is, and what your likely tax bill will be.
Better cash flow & tax planning
Quarterly updates (even voluntary now) mean no more nasty tax surprises at the end of the year. You can plan cash flow and save for bills in advance.
Reduce errors & HMRC risk
Paper records and spreadsheets are easy to miscalculate. Early adoption of digital bookkeeping means fewer errors, and it makes HMRC queries much easier to answer.

What software do we recommend?

Which software we recommend will always depend on your circumstances. For some landlords, Hammock is the ideal choice because it’s purpose-built by landlords and offers property-specific features that make rental bookkeeping simple. However, for clients with wider business activities, company structures, or more complex accounting needs, Xero may be the more suitable option due to its broader functionality and integrations.

Our recommendation is always tailored to each client’s portfolio, goals, and level of complexity, ensuring you get the software that truly fits your needs.

Contact our experts today to learn more and get a head start on the changes ahead.