Self-Assessment in 2025/26: What’s New for Landlords

From digital tax reporting to tightened expense rules, the self-assessment process is evolving for landlords in 2025/26. This quick guide breaks down the key updates, and how to stay compliant without the chaos.

Key Takeaways

• MTD rules are coming in 2026. Landlords earning over £50,000 must file digitally and submit quarterly updates.

• You must file a tax return if your rental income is over £10,000 (gross) or £2,500 (after expenses), even if you only rent part-time.

Digital Filing: MTD Is Coming

From April 2026, landlords earning over £50,000 from property or self-employment must follow MTD for ITSA rules - part of the broader MTD for Income Tax initiative.

• Keeping digital records

• Sending income and expense updates to HMRC every quarter

• Filing a final yearly summary

If your income is under the limit now, still plan ahead. The threshold drops to £30,000 in 2027 and £20,000 in 2028.

Worried about keeping digital records or filing every quarter? BOOK A FREE CALL with JAFA and we’ll help you get MTD-ready without the confusion, the stress, or the last-minute panic.

What Counts as Taxable Property Income?

It’s not just rent that HMRC taxes.

If you’re a landlord, your taxable income includes:

• Rent from tenants

• Service charges (like cleaning or maintenance fees)

• Fees for using furniture

• Premiums paid when granting a lease

• Any income used for repairs (even if you never receive it)

You must file a tax return if:

• Your rental income is over £10,000 gross, or

• Your profit (after expenses) is over £2,500

Special rules apply to furnished holiday lets and the Rent-a-Room scheme, so check if you qualify.

Don’t Miss Out on Allowable Expenses

You can reduce your tax bill by claiming everyday landlord costs like:

• Repairs and maintenance (not improvements)

• Letting agent and legal fees

• Insurance, utility bills, council tax (if you pay them)

• Advertising for new tenants

Note: You can’t deduct costs that add value to the property, like a new kitchen, but you can use them later for Capital Gains Tax.

Mortgage interest? You no longer deduct it directly. Instead, you get a basic 20% tax credit.

What We Think

Self Assessment can be confusing, and for landlords, it’s only getting trickier. With new digital rules on the way, it’s easy to feel overwhelmed.

We’ve seen many landlords miss tax deadlines or forget to claim things they’re allowed to, just because the rules aren’t clear. Most people aren’t tax experts. They just want to stay on the right side of HMRC and not pay more than they have to.

We think the system should be simpler and more helpful, especially for landlords who manage property part-time.

Until then, landlords need clear support that explains what to do, what to claim, and how to stay organised without stress.

How JAFA Can Help

At JAFA, we make Self Assessment simple, especially for landlords who don’t have time to figure it all out.

We help you:

• Track your property income and expenses all in one place

• Know what you can and can’t claim 

• Stay ready for MTD with digital records and timely reminders

• Avoid missed deadlines and penalties

Not sure where to start? BOOK A FREE CALL with our expert accountants and we’ll walk you through exactly what you need - no pressure, no jargon, just real help.

Frequently Asked Questions

1. What is Making Tax Digital?

It’s HMRC’s plan to move Self Assessment and other tax processes online, starting with digital record-keeping and quarterly updates.

2. When UK sole traders need to register with HMRC?

If you’ve earned more than £1,000 from self-employment in a tax year, you must register by 5 October following the end of that tax year.

3. Self assessment in 2025/26: what's new for landlords 2022?

Still relevant - many of the rule changes proposed back in 2022 are now taking effect in 2025/26. If you missed those updates, now’s the time to catch up.