If you own rental property in Wrexham — whether it’s a terrace near the Racecourse Ground, a family home in Caia Park, a professional let close to Wrexham Industrial Estate or a portfolio spread across Rhostyllen and Rhosddu — Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) should already be on your radar.
The new HMRC rules are now in force for qualifying landlords, changing how rental income is recorded and reported. If you’re already within scope, you’ll need to keep digital records and submit updates using compatible software. If you’re not yet affected, now is the ideal time to prepare before the income thresholds reduce over the next two years.
The good news is that staying compliant doesn’t have to be difficult. By getting organised, choosing the right software and reviewing how you manage your rental income, you’ll be well placed to meet your obligations with confidence.
What is Making Tax Digital for Income Tax?
Making Tax Digital (MTD) is HMRC’s programme to modernise the UK’s tax system.
Instead of completing one annual Self Assessment tax return using paper records or standalone spreadsheets, landlords within the scheme must keep digital records and submit regular updates to HMRC using compatible software.
Rather than preparing everything once a year, you’ll maintain an up-to-date digital record of your rental business throughout the year.
Under the new system you’ll typically need to:
- Keep digital records of rental income and allowable expenses.
- Submit quarterly updates to HMRC using compatible software.
- Submit an End of Period Statement (EOPS).
- Complete a final declaration confirming your overall tax position.
Although this represents a significant change, many landlords find the process much easier once their digital records are in place.
Which Wrexham landlords are affected?
From 6 April 2026, landlords whose qualifying income meets HMRC’s entry criteria are required to comply with Making Tax Digital for Income Tax.
The rollout continues over the coming years:
- From April 2027, the threshold reduces to £30,000.
- From April 2028, it will reduce again to £20,000.
This means many more landlords across Wrexham will soon be brought into the scheme, including those with a single rental property.
Gross income means your total rental income before deducting expenses such as mortgage interest, repairs, insurance, or letting fees.
If you jointly own rental property, each owner’s share of the income is considered separately when determining whether they meet the threshold.
Even if you’re below today’s threshold, preparing now will make the transition much smoother when the rules eventually apply to you.
Does this apply to landlords in Wales?
Yes.
Making Tax Digital is a UK-wide HMRC requirement and applies equally to landlords in Wales.
As a landlord in Wrexham, you’re already familiar with Welsh housing legislation under the Renting Homes (Wales) Act 2016, which introduced occupation contracts and the term “contract holders” instead of tenants.
Making Tax Digital doesn’t replace these responsibilities. It simply changes how your rental income is recorded and reported to HMRC.
What do you need to do?
Check whether you’re within scope
Review your combined gross qualifying income from rental property and self-employment.
If you’re already above the current threshold, make sure you’re fully compliant with HMRC’s requirements. If you’re below it, use this opportunity to prepare well before the lower thresholds take effect.
Choose HMRC-compatible software
You’ll need software that can maintain digital records and submit updates directly to HMRC.
Many products are designed specifically for landlords, while broader accounting platforms also support Making Tax Digital.
Look for software that can:
- Record rental income and allowable expenses.
- Categorise income and expenditure by property.
- Submit quarterly updates directly to HMRC.
- Produce your end-of-period statement.
- Integrate with your accountant if required.
A full list of compatible software is available on the HMRC website.
Organise your records
If you’ve relied on paper records until now, this is the perfect opportunity to move towards digital bookkeeping.
While spreadsheets may still be used in some circumstances when linked through approved bridging software, landlords must ensure their record-keeping fully complies with HMRC’s digital requirements.
Good record-keeping throughout the year makes quarterly reporting far simpler.
Register if you haven’t already
If you’re within scope and haven’t yet signed up, you’ll need to register through your Government Gateway account.
Many accountants and tax advisers can complete the registration and manage submissions on your behalf.
If you’re uncertain whether you’re fully compliant, it’s worth speaking to your accountant sooner rather than later.
Understanding quarterly reporting
Instead of one annual tax return, landlords within Making Tax Digital now submit quarterly updates throughout the tax year.
Missing submission deadlines may result in HMRC’s points-based penalty system, with financial penalties once certain thresholds are reached.
For landlords managing several properties across Wrexham, maintaining organised digital records throughout the year makes meeting these deadlines significantly easier.
Predictable rental income and well-maintained accounts can also help simplify the reporting process.
How Northwood’s Guaranteed Rent service can help
At Northwood Wrexham, we understand that successful property management is about more than simply finding contract holders.
Keeping accurate financial records becomes much easier when your rental income is consistent and arrives on the same date each month.
Our Guaranteed Rent service provides landlords with a fixed monthly payment, subject to the terms of the Guaranteed Rent agreement, giving you greater certainty over your income and helping simplify your financial record-keeping.
When your rental income is predictable, organising digital records and preparing quarterly updates becomes far more straightforward.
Combined with support from your accountant, it can make staying compliant with Making Tax Digital much less time-consuming.
Guaranteed Rent. Guaranteed Freedom.
Learn more about our Guaranteed Rent service.
Discover our landlord services.
Find out how our property management team can support you.
Frequently asked questions
Do I need Making Tax Digital if I only own one rental property?
Possibly. The number of properties you own isn’t what determines whether you need to comply. It’s your combined qualifying gross income from property and self-employment that matters.
Can my accountant submit updates for me?
Yes. Many accountants can manage your quarterly updates, end-of-period statement, and final declaration using compatible software.
Can I still use spreadsheets?
Potentially. Some landlords continue using spreadsheets alongside approved bridging software, but your records must still meet HMRC’s digital requirements.
What happens if I miss a submission?
HMRC operates a points-based penalty system for late submissions. Missing multiple deadlines can lead to financial penalties, so it’s important to stay organised throughout the year.
Stay compliant with confidence
Making Tax Digital is now part of the way many landlords manage their tax affairs. For others, the lower income thresholds due over the next two years mean the changes are fast approaching.
Whether you’re already submitting quarterly updates or preparing for future compliance, organised finances and predictable rental income can make the process much simpler.
If you’d like greater certainty over your rental income while reducing the day-to-day administration of managing your property, the team at Northwood Wrexham is here to help.
Book your free property valuation today:
We’ll explain how our Guaranteed Rent service works, discuss your property goals and show you how we can help you manage your investment with confidence.
