The UK Government’s Making Tax Digital (MTD) rules are changing how landlords manage their tax returns. From April 2026, any landlord with property income above £50,000 must submit digital tax updates, with the threshold dropping to £30,000 in April 2027.
For landlords with student properties, this will be a big shift. Managing multiple HMOs, joint ownerships, and the unique tenancy patterns of the student market already takes time — and now tax reporting is going digital.
In this blog, we have detailed everything you need to know about Making Tax Digital for Landlords and how you can prepare.
What Has Changed? A Quick Comparison
Here’s how the new rules compare with the old system:
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Before April 2026 |
After April 2026 |
|
One annual Self-Assessment return |
Quarterly digital submissions + annual End of Year Statement |
|
Paper returns and spreadsheets allowed |
Must use HMRC-recognised software |
|
Only one deadline each year |
Deadlines every quarter |
|
No income threshold |
Applies to landlords earning £50k+ (2026), £30k+ (2027) |
For many student landlords in Bristol, this means your rental income from HMOs or multiple flats could easily cross the threshold — triggering the new reporting rules.
Who Will Be Affected by These Changes?
From April 2026 any landlords or self-employed individuals with an income of over £50,000 must comply. From April 2027 the threshold will drop to £30,000. The government is yet to confirm the rules for those under £30,000, but consultation is on-going.
Some of the key aspects to note are:
- Student HMO landlords: Income is assessed across all properties you own. If the total gross income goes above the threshold, MTD applies.
- Joint landlords: If you co-own a student property, each owner is assessed separately. Even if your share alone is over £50,000 (or £30,000 from 2027), you’ll need to comply.
- Non-resident landlords: Living abroad but renting to Bristol students? You’ll still need to file digitally if your income crosses the threshold.
How Will Reporting Work?
- Quarterly Updates
Every three months landlords must submit a digital summary of rental income and expenses through . Deadlines will fall a month after each quarter.
- End of Period Statements (EOSP)
At the end of each tax year landlords must confirm their quarterly submissions are correct and adjust.
- Final Declaration
Replaces the traditional self-assessment return form. Confirm the total income from all sources (e.g. Property, self-employment, employment, dividend) and calculate the final tax due.
What Records do I Need to Keep for MTD?
For student landlords, it’s essential to track:
- Rental income per property – HMRC requires separate records for each property.
- Allowable expenses – Repairs, management fees, landlord insurance, utilities (if included in rent).
- Capital allowances – For major improvements or furnishing HMOs.
All records must be digital and kept for at least 5 years.
Penalties for Non-Compliance
HMRC is introducing a points-based penalty system:
- Miss a quarterly deadline → earn a penalty point.
- Points build up → fines and interest charges.
- Persistent lateness → daily penalties.
For student landlords with multiple properties, staying organised is key to avoiding unnecessary fines.
The Practical Challenges for Student Landlords
- Multiple tenancies – Many student properties run on 12-month tenancies with different move-in dates. Aligning these with quarterly reporting adds complexity.
- Joint ownership – Each landlord files separately, even for a shared HMO.
- Switching systems – If you’re using spreadsheets or paper, you’ll need to move to approved software.
How Landlords Can Prepare
- Check your income – Are you likely to pass the threshold in 2026/2027?
- Choose MTD-ready software – HMRC lists options like Xero, QuickBooks, and Sage. Some student landlord–friendly tools are in development.
- Start early – Move your records online now to avoid a rushed transition.
- Learn the calendar – Familiarise yourself with quarterly deadlines.
- Track expenses properly – Especially for shared student houses with utility bills, furniture, and repairs.
How Bristol Digs Can Help
At Bristol Digs, we specialise in the student rental market. We know the challenges of managing HMOs, joint ownerships, and seasonal rental cycles — and we’re here to support landlords through MTD by:
- Sharing the latest government updates tailored to student landlords. Recommending HMRC-recognised software suitable for multiple-occupancy rentals. Connecting you with trusted local accountants who understand the student market. Providing practical guidance on record-keeping and quarterly reporting.
With Bristol Digs, you’re not on your own. We’ll make sure you’re ready for the digital shift.
