Making Tax Digital (MTD) is here, and for many letting agents, it’s becoming a bigger challenge. From 6 April 2026, landlords (and sole traders) with turnover of over £50,000 from property and/or self-employment have been required to keep digital records of how much they earn and submit a record of their income and expenses quarterly to HMRC using special software. But with the first quarterly filing deadline on 7 August 2026, the pressure is immediate. And the pressure doesn’t stop there!
A growing admin burden
MTD doesn’t just introduce a new process. It introduces more frequent tax reporting, for more and more landlords every year.
The reporting threshold is reducing to £30,000 from April 2027 and £20,000 from April 2028. That means a rapid increase in the number of your managed landlords in scope that you will need to support.
Without the right systems in place, agents face more requests for key property financial information from more landlords as each quarterly deadline approaches. MTD requires landlords to maintain accurate digital records and submit quarterly updates to HMRC but for agents relying on spreadsheets or fragmented systems, that creates real risks. Inconsistent or incomplete property income and expenses could expose your landlords to potential warnings and fines from HMRC if submissions are late or inaccurate.
Without the right software, MTD risks becoming a recurring and growing admin headache for your team, multiplied across the vast majority of your lettings portfolio.
The simplest way to remove this risk is to start with the right financial data. PayProp, the bank-integrated client accounting platform from Reapit, provides exactly that for lettings agencies. It automates rent collection, reconciliation and payments in real time while maintaining a complete, accurate record of every property income and expense that is paid into or out of the platform.
That creates a single, trusted source of financial truth for your agency, and more importantly for MTD, for your landlords. So while MTD increases reporting frequency, PayProp reduces the effort behind it.
Removing the agent admin burden
But even with all this accurate income and expense information for your landlords, you could still be faced with quarterly calls to provide that information for an increasing number of your landlords, which is why PayProp is integrated with leading MTD software Nexus by Landlord Studio.
Thanks to this partnership, Nexus can pull property income and expense data directly from PayProp into a secure landlord portal, where landlords can review and submit it to HMRC.
Crucially, the only step an agent needs to take is to invite their landlords. Once the landlord has signed up, property income and expenses flow automatically from PayProp into Nexus where your landlords (or their accountants) can check and complete the submission to HMRC in a few clicks. This gives your team more time back every quarter to focus on growth instead of tax reporting admin.
Because Nexus is invitation-only and designed specifically for agent-managed landlords, it keeps the agent at the centre of the relationship while removing the tax reporting admin burden. At the same time it opens up a commercial opportunity, with agents able to earn recurring revenue from each landlord using Nexus.
The easy way to approach MTD
With the first reporting deadline in August 2026 almost here changing thresholds set to bring more landlords into scope each year, the question for letting agents is not whether to act, but how.
Those relying on manual processes will feel the pressure build quickly through increased admin, more queries and greater risk of errors. But agencies that put the right systems in place now can remove that pressure entirely and earn commission at the same time.
PayProp provides the foundation, giving agents a complete and accurate record of all property income and expenses through its bank-integrated platform. Nexus builds on that foundation, turning the same data into a simple, landlord-led route to MTD compliance.
To learn more about PayProp and its Nexus integration, book a demo today.
