What is Making Tax Digital for Income Tax Self Assessment?
Making Tax Digital for Income Tax is part of the UK government's broader plan to digitise the tax system. From April 2026, landlords and self-employed individuals with an annual income over £50,000 will be required to:
Keep digital records of income and expenses.
Submit quarterly updates to HMRC via Making Tax Digital software.
Complete a Final Declaration annually.
Those earning over £30,000 will be required to join Making Tax Digital from April 2027.
Who does Making Tax Digital for Income Tax impact?
Making Tax Digital is already in effect for VAT-registered businesses. Making Tax Digital for Income Tax expands these digital requirements to all landlords and self-employed individuals earning above the threshold (£50,000 from April 2026, with later phases affecting those earning over £30,000 and £20,000).
Instead of filing a single annual self-assessment, landlords and self-employed people will need to submit quarterly updates and a final declaration to HMRC through Making Tax Digital compatible software.
Making Tax Digital for Income Tax key dates
April 2026:Making Tax Digital for Income Tax (£50,000 threshold)
April 2027:Making Tax Digital for Income Tax (£30,000 threshold)
April 2028:Making Tax Digital for Income Tax (£20,000 threshold)
What are the penalties for non-compliance?
HMRC is introducing a new points-based penalty system for Making Tax Digital for Income Tax:
Late quarterly submissions will earn penalty points.
Accumulating too many points results in a fine.
Late tax payments will trigger fines based on how overdue they are.
To avoid penalties, landlords must ensure they use Making Tax Digital compatible software and meet all reporting deadlines.
Can I still use paper records?
No, in order to be compliant with Making Tax Digital regulations you will need to digitise any paper records using an Making Tax Digital compatible software.
About quarterly updates and final declarations
Landlords will have just over one month after the end of the quarter to submit each quarterly update. The submission dates look like:
Quarterly period | Submission deadline |
6 April – 5 July | 7 August |
6 July – 5 October | 7 November |
6 October – 5 January | 7 February |
6 January – 5 April | 7 May |
Final Declaration: Due January 31 (the following year)
Final Declaration (Replaces Self-Assessment Tax Return)
After the last quarter, you must submit a Final Declaration.
This confirms your total income, expenses, and tax due for the year.
Can Nexus handle the quarterly MTD submissions and the year-end/final declaration?
Yes. Nexus supports quarterly MTD submissions and the year-end final declaration. You caveated that most landlords will still have other items in their annual tax return, so accountants will often complete the final submission from their own software.
When are quarterly MTD submissions due?
Under HMRC rules, quarterly submissions are due by the 7th of the month following the reporting period. Example: 7 August for 6 April to 5 July, and 7 November for 6 April to 5 October.
Is Nexus pricing expected to increase significantly year to year?
There are no planned price increases, while noting future pricing is always subject to change.
What commitment period does Nexus require?
There is no fixed contract terms. Nexus offers both monthly and annual subscription options, so landlords can choose the either the month or yearly subscription that suits them.
What happens if a landlord stops renting out a property but still has HMRC reporting obligations?
If HMRC requires further reporting after the property business ceases, the landlord can continue using Nexus as long as they maintain an active subscription, even if the automated agency feed stops.
Can joint landlords, secondary owners, or accountants access the same Nexus account?
Yes landlords can invite secondary owners and/or accountants into the single Nexus account.
A landlord has signed up but sees no properties. Why?
You explained that property and transaction data syncs every 24 hours around 7pm UTC. The landlord should wait until the next day for the data to appear.
Can a landlord use the same email/link for two separate people?
The answer implied no: each landlord needs their own setup/account path. For joint ownership/accountant access, the proper solution is the secondary owner/accountant invite feature rather than sharing one account.
Can accountants use Nexus, and who submits?
Yes landlords or accountants can review the property income/expense data and submit directly to HMRC. Accountants can be invited to review and submit on the landlord’s behalf.
Does Nexus add tax responsibility for the agency?
No. Nexus avoids manual re-entry/reconciliation and creates no additional tax responsibility for the agency. Landlords or accountants review and submit.
Can landlords add extra expenses not held by the agent?
Yes, landlords can add additional income or allowable expenses before submitting quarterly MTD updates.
Does Nexus support self-managed properties as well as agent-managed properties?
Yes landlords can add other properties e.g. Airbnbs that are not managed by the agent. The landlord can also ask other agents to turn on Nexus for them if that agent is using a supporting integration.
Which platforms can enable Nexus for agent-managed landlords?
Nexus can integrate with Reapit, PayProp, SME Professional, LettsPay, and Alto. Others are coming soon.
Is there a free trial?
Yes, there is free 7 day trial to test Nexus out and see how it works.
Can an accountant enable Nexus directly for their client?
No, not directly. Nexus can only be enabled for landlords by the letting agent, so the agent must be engaged/onboarded as a partner.
Is data shared before the landlord activates their account?
No data is shared until the landlord activates their account.