Landlord bookkeeping · Records guide · 2026
Bookkeeping for UK landlords: records, software, and MTD.
Written by Iftikhar Rashid FCCA — 16 years in practice, specialist in landlord tax.
What landlords need to record
HMRC requires landlords to keep records supporting their self-assessment return — rent received, allowable expenses with receipts, mortgage interest for Section 24, and capital expenditure for CGT. From April 2026, landlords above £50,000 gross must keep digital records as part of MTD compliance. The minimum record-keeping period is 5 years after the filing deadline.
What records to keep — by category
Rental income
Rent received dates and amounts, rent statements from letting agent, any other income from the property
Allowable expenses
Letting agent invoices, repair receipts and invoices, insurance renewals, professional fee invoices, utility bills (if paid by landlord)
Finance costs
Mortgage statements showing interest paid — used for the Section 24 tax credit calculation
Capital expenditure
Invoices for improvements — extensions, upgrades. Not deductible now, but reduces CGT when you sell
Bank statements
All transactions through your rental bank account — income received and expenses paid
Tenancy documents
Tenancy agreements, inventory reports, deposit records, void period dates
Correspondence
Any HMRC letters, council tax bills, letting agent reports, solicitor correspondence
How MTD changes landlord bookkeeping from April 2026
Before MTD (annual self-assessment)
- •Records kept throughout the year (any format)
- •Compiled for accountant typically January
- •Single annual return filed by 31 January
- •Paper records acceptable
After MTD (from April 2026, above £50k gross)
- ✓Digital records required throughout the year
- ✓Quarterly submissions — 4 updates per year
- ✓Digital link from records to HMRC submission
- ✓Paper records NOT acceptable for MTD
[VERIFY current MTD record-keeping requirements at gov.uk/topic/business-tax/making-tax-digital]
FAQs
What records must UK landlords keep?
HMRC requires landlords to keep records sufficient to support the figures in their self-assessment return. This includes: rent received (with dates), all allowable expenses with invoices or receipts, bank statements showing property transactions, mortgage statements (for Section 24 credit), any capital expenditure invoices (for CGT base cost), and tenancy agreements. MTD from April 2026 adds a digital records requirement. [VERIFY current record-keeping rules at gov.uk]
How long do landlords need to keep records?
HMRC requires landlords to keep records for at least 5 years after the 31 January filing deadline for the relevant tax year. For a 2025/26 return filed by 31 January 2027: keep records until at least January 2032. If HMRC opens an enquiry, records must be kept until the enquiry is resolved — even if this extends the standard period. [VERIFY current retention rules at gov.uk]
Do landlords need accounting software?
Not legally for self-assessment — yet. But from April 2026, landlords above £50,000 gross must keep digital records as part of MTD compliance. This effectively requires software. Even below the threshold, digital records are faster, more accurate, and significantly easier to work with than paper or spreadsheets — both for annual filing and for managing portfolios across multiple properties.
What bookkeeping software do landlords use?
Options range from simple to comprehensive. For basic portfolios: a dedicated spreadsheet template (acceptable for self-assessment, not for MTD above threshold). For MTD-compliant portfolios: Xero, FreeAgent, or a specialist property management platform with an MTD bridge. We set up and maintain software for every landlord client — landlords do not have to do this themselves.
How does MTD change bookkeeping requirements?
From April 2026, landlords above £50,000 gross must: keep digital records of rental income and expenses throughout the year (not just at year-end); maintain digital links from records to submission software; and submit four quarterly updates to HMRC. The records must be kept in real-time — not assembled in January. [VERIFY MTD rules at gov.uk/topic/business-tax/making-tax-digital]
We manage the bookkeeping for you.
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