MTD Readiness Checklist for UK Property Managers
Free checklist: Are you ready for Making Tax Digital? 48 items covering records, software, VAT, and quarterly submissions for Airbnb hosts and property managers.
📅 Key MTD Deadlines
- April 2026: MTD for Income Tax starts — property income over £50,000
- April 2027: Threshold drops to £30,000
- April 2028: Threshold expected to drop further
- Now: VAT threshold is £90,000 gross turnover
1 Know Your Numbers
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Calculate your total gross property income (before platform fees — not your payout)
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Add income from all platforms: Airbnb, Booking.com, Vrbo, direct bookings
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Confirm whether you're above the £50,000 MTD threshold for April 2026
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If below £50,000 — check when the £30,000 threshold applies (April 2027)
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Check if you're approaching the £90,000 VAT thresholdAirbnb's simplified pricing (15% fee) inflates your gross turnover. See our VAT threshold guide →
2 Digital Records
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Stop relying on paper records or memory — MTD requires digital records
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Create a digital record of every income transaction (date, amount, source)
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Create a digital record of every expense (date, amount, category)
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Set up a system to keep records for at least 5 years after the 31 January deadline
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Move off paper-only or memory-only tracking — spreadsheets alone are not MTD-compliant
3 Choose Your Software
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Decide between bridging software (keeps your spreadsheets) or automated reporting (no spreadsheets) Compare both approaches →
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If bridging: confirm it links to HMRC's MTD API (Absolute Accounting, Able, TaxCalc, etc.)
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If automated: connect your platform accounts
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Confirm your software handles gross income — not just net payouts
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Test a quarterly submission before your first real deadline
💡 HMRC Reporter imports from 27+ platforms and generates MTD-ready XML — automatically.
Try It Free →4 Quarterly Submissions
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Understand the quarterly cycle: 4 updates per year + end-of-period statement + final declaration
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Mark your calendar: first quarterly deadline is one month after the end of each quarter
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Q1: 6 Apr – 5 Jul → submit by 5 Aug
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Q2: 6 Jul – 5 Oct → submit by 5 Nov
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Q3: 6 Oct – 5 Jan → submit by 5 Feb
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Q4: 6 Jan – 5 Apr → submit by 5 May
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Know that late quarterly submissions trigger the same penalties as late Self Assessment
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You still file an annual Self Assessment (end-of-period statement + final declaration)
5 Expense Categories
Make sure you're tracking all allowable expenses. Check off the ones you're already recording:
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Platform fees (Airbnb, Booking.com, Vrbo service fees)
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Cleaning and turnover costs between guests
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Utilities (electricity, gas, water, broadband)
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Insurance (buildings, contents, landlord)
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Maintenance and repairs
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Council tax (if you pay it)
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Supplies (toiletries, linen, welcome packs)
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Professional fees (accountant, tax adviser)
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Advertising and listing fees
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Replacement of domestic items (furnishings — not initial furnishing)
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Mortgage interest (tax credit at 20% for residential property)
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Travel — only for business purposes (property visits, collecting supplies)
6 Multi-Platform Reconciliation
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Combine income from all platforms into one digital record
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Don't double-count: if a property is on Airbnb and Booking.com, track each booking separately
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Reconcile platform payouts against your bank statements monthly
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Keep platform export files (CSVs) as supporting evidence
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Track direct bookings separately — no platform data to fall back on
7 VAT Position
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Calculate your combined gross turnover from all sources
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If approaching £70,000: start tracking monthly
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Know that you must register for VAT within 30 days of hitting £90,000
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Understand late registration = backdated VAT + penalties + interest
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Know the deregistration threshold: £88,000 (if turnover drops)
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Consider whether voluntary VAT registration makes sense for your situation
8 Before Your First Submission
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Register for MTD-compatible software and link it to your HMRC account
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Import or enter all income and expenses for the current tax year
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Run a test quarterly submission (most software allows a dry run)
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Confirm your National Insurance number and UTR are linked correctly
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If you have an accountant: share software access so they can review before submission
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Set up automated data imports where possible — reduce manual entry errors
Want this done automatically?
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