Keep your spreadsheet. Meet HMRC's requirements. Nothing else changes.
Otis connects your existing records to HMRC — no new system to learn, no workflow to rebuild.
What is MTD for Landlords?
Making Tax Digital for Income Tax is here. From April 2026, most landlords with rental income above the thresholds must send digital updates to HMRC four times a year.
Not detailed accounts. Not a full tax return. Just quarterly snapshots of your income and expenses — and a final declaration at year end, which replaces your annual Self Assessment return.
How Quarterly Updates Work
Every 3 months, you tell HMRC:
- How much rent you received
- What your expenses were
- Any changes to your property setup
These aren't final — you can adjust everything at year end. The deadlines for quarterly submissions are 7 August, 7 November, 7 February, and 7 May each year.
HMRC won't issue penalty points for late quarterly submissions during the first year (2026/27). Late annual returns can still attract penalties, but the first year is your adjustment period. Use it to get set up properly.
From 2027 onwards, a points-based system applies — one point per missed quarter. Four points triggers a £200 fine.
MTD Thresholds for Landlords
Based on your gross rental income before expenses — not your profit. See note below.
Thresholds apply across all rental properties combined — not per property. Includes UK and overseas rental income.
The Threshold Is Your Rent, Not Your Profit
This catches a lot of landlords out. MTD applies based on what you receive in rent — before you deduct any expenses. Agent fees, maintenance, mortgage interest — none of that reduces the number HMRC uses to decide if you're in scope.
Your two properties generate £55,000 in rent. After expenses — mortgage, agent fees, repairs — your actual profit is £18,000. You are still in scope for MTD from April 2026, because the threshold is based on the £55,000, not the £18,000.
What If You Own Property Jointly?
Each owner is assessed individually, based on their share of the income. So if you and a partner jointly own a property generating £80,000 in rent, your share is £40,000 — and whether that triggers MTD depends on what else you earn from property or self-employment.
If you both exceed the threshold, you each need to register and submit separately — but you can both use the same software.
Already in Self Assessment? That doesn't register you for MTD. You need to sign up separately with HMRC and connect your chosen software before 6 April 2026 if you're in the first wave.
What MTD Doesn't Cover
Quarterly updates only cover your rental income and expenses. PAYE income, pension income, dividends, and bank interest are not part of your quarterly submissions — those are still declared at year end through the final declaration.
So if you're employed as well as being a landlord, MTD handles the rental side. Your employer continues to handle PAYE separately. Properties owned through a limited company are also excluded — MTD only applies to personally or jointly held property.
Why So Many Landlords Still Use Spreadsheets
If you've got one or two rental properties, a spreadsheet works perfectly. It's fast, flexible, and you already know how to use it.
MTD doesn't force you to switch to full accounting software — it just requires digital submission. That's why Otis works with your spreadsheet instead of replacing it.
How Otis Fits In
Otis is not a full accounting platform. It's not trying to take over your finances. If you're a hands-on landlord who prefers to manage things yourself, Otis is built for you.
You keep your spreadsheet. You track rent however you like. Otis creates the digital link HMRC requires — reads your data, organises it into HMRC-ready categories, and submits it in a few clicks. You review everything before anything goes to HMRC.
You can also download our free spreadsheet template or read our full guide to how Otis works.
Finding Otis Through the HMRC Tool
HMRC maintains a software finder tool for landlords and sole traders. Here's how to navigate it — and find Otis at the end.
This tells HMRC you want software for individual quarterly updates — not a business or company.
This filters results to property-specific MTD software. Otis supports both UK and overseas rental income.
Select the accounting period your rental income runs to. Otis works with either option.
Answer the remaining questions to narrow results to simple, submission-focused tools built for landlords.
You'll see Otis listed as an approved bridging software solution — HMRC verified and ready to use.
Ready to Get Started?
The simplest way to make your spreadsheet MTD compliant — no changes to your workflow required.