Landlords ahead of pack in preparing for Making Tax Digital

Buy-to-let owners are not only better prepared for new tax rules, but nearly half see it as a benefit, according to global tax and accounting software provider.

Landlords are significantly more prepared for the rollout of Making Tax Digital (MTD) than expected, new research shows, as the April 2026 deadline nears.

The study, which was commissioned by Wolters Kluwer Tax & Accounting, found that four in five landlords (80%) say they feel ready for the changes, compared with 64% of sole traders, with more than a third of sole traders (36%) saying they are not prepared.

From April 2026, taxpayers with business or property income above £50,000 will be required to keep digital records and submit quarterly updates to HMRC, with lower thresholds following.

Making Tax Digital represents a fundamental shift in how individuals manage and report their tax affairs.”

Bas Kniphorst (pictured), EVP and Managing Director Europe at Wolters Kluwer Tax & Accounting, says: “Making Tax Digital represents a fundamental shift in how individuals manage and report their tax affairs, and this research shows that while landlords are largely on track, many sole traders still feel uncertainty.”

Respondents most commonly cited easier reporting to HMRC as the main benefit (46%), but landlords were more likely to identify wider advantages, including better financial forecasting and data analysis (44% versus 14% among sole traders) and improved bookkeeping efficiency (40% versus 32%).

Confidence levels also differed. Around two-thirds of landlords (66%) said they were familiar with MTD requirements, compared with around half of sole traders who said they knew little about what it involves. Landlords were also more proactive, with 28% saying they had attended webinars or consulted guidance, compared with just 8% of sole traders.

Despite higher levels of readiness, landlords still raised concerns around software choice and cost, while many said training sessions and adviser support would help. Across both groups, 77% said they expected to seek help from an accountant or adviser, rising to 86% among landlords.