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The right MTD software should fit your client base and workflows, reducing manual tasks. Property-specific solutions enhance accuracy and protect profitability as your practice grows. Standardizing software early helps meet deadlines and frees up time for higher-value advisory work.

MTD requires sole traders and landlords earning over £50,000 to use HMRC-recognised software for recording all income and expenses digitally. Generic invoice generators won't meet compliance standards, as they lack HMRC connectivity and automatic categorisation.

From May 2026, the Renters’ Rights Act 2025 ends Section 21 evictions and increases enforcement against landlords. Civil penalties can reach £40,000, with councils given wider powers to act against serious or repeat breaches. New registration and redress rules may restrict possession rights where landlords fail to comply.

Capital expenditure in property businesses cannot be deducted from rental profits. It includes costs like buying land, building structures, and improving properties. However, certain capital allowances, such as for plant and machinery, or relief for replacing domestic items, may offer tax relief over time.

The Non-Resident Landlord Scheme ensures that UK rental income from landlords living abroad is taxed correctly. Tax is deducted at source by the letting agent or tenant, unless HMRC approves a gross rent payment. Compliance with the scheme is critical to avoid penalties and interest.

Corporation tax property losses must first be set against a company’s total profits for the same accounting period. Unused losses can be carried forward, requiring a formal claim within two years. Special rules apply for pre-2020 Income Tax Property Losses