Making Tax Digital Overview

Making Tax Digital Overview

Making Tax Digital (MTD) is a UK government initiative that requires landlords to keep digital records and submit tax information to HMRC through compatible software.

Who Is Affected

From April 2026, landlords with rental income above the MTD threshold must:

• Keep digital records of all income and expenses.
• Submit quarterly updates to HMRC.
• Submit a final declaration at year-end.

How Latch Helps

Latch is designed to be MTD-compatible:

• Digital Record-Keeping — All payments, expenses, and receipts are stored digitally.
• Categorised Expenses — Expenses are mapped to HMRC's allowable categories.
• Quarterly Summaries — Generate reports for each quarter.
• Export for Submission — Export data in the format required for MTD submission.

Getting Started

1. Ensure all income is recorded as payments in Latch.
2. Record all expenses with correct categories and receipts.
3. At the end of each quarter, generate a Tax Summary Report.
4. Submit through HMRC's MTD portal or compatible software.

Key Deadlines

• Quarterly updates are due one month after each quarter ends.
• The final declaration replaces the traditional self-assessment return.

Tip: Start using Latch to record all income and expenses now, even before MTD becomes mandatory for you — this builds the habit and ensures your records are complete.