Frequently asked questions
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Making Tax Digital
What is Making Tax Digital (MTD)?
Making Tax Digital is HMRC's programme to move tax record-keeping and reporting online. Starting April 2026, landlords earning over £50,000 must use HMRC-recognised software to maintain digital records and submit quarterly updates to HMRC. Thresholds drop to £30,000 in 2027 and £20,000 in 2028.
Does MTD affect me?
MTD applies if your gross rental income — plus any self-employment income — exceeds the threshold. Our free quiz takes 2 minutes and tells you exactly where you stand.
When does MTD for landlords start?
The first wave starts 6 April 2026 for landlords with income over £50,000. If you're below that threshold now, the lower thresholds in 2027 and 2028 may still bring you into scope.
What are quarterly updates?
Instead of a single annual tax return, MTD requires you to send HMRC a summary of your income and expenses every quarter. There are four updates per year, plus a Final Declaration in January. Lettd submits these directly to HMRC on your behalf.
Your property & records
What counts as rental income?
All rent received, plus any service charges you receive for things like cleaning or utilities. Security deposits don't count as income unless you keep all or part of them.
What expenses can I deduct?
Allowable expenses include repairs and maintenance, letting agent fees, landlord insurance, mortgage interest (as a 20% tax credit under Section 24), utilities, safety certificates, travel to inspect the property, and professional fees.
I have more than one rental property. Can I use Lettd?
Yes. You can track multiple properties separately, and Lettd consolidates them into a single quarterly submission to HMRC.
What if I'm currently using spreadsheets?
Spreadsheets alone don't satisfy MTD requirements — you need software that can submit directly to HMRC. You can import your existing data via CSV on the Transactions page to migrate quickly.
Using Lettd
Do I need an accountant to use Lettd?
No. Lettd is designed to be used independently. You can share your year-end summary with an accountant if you have one, but the quarterly submissions are handled directly through the app.
Is my data secure?
All data is encrypted at rest and in transit using TLS 1.2+. We use Supabase for our database (ISO 27001 certified infrastructure) and do not share your data with any third parties except HMRC for your submissions and Stripe for payment processing.
What happens if I miss a quarterly deadline?
HMRC operates a points-based penalty system. Points 1–3 carry no financial penalty. At 4 points you receive a £200 fine, and each subsequent missed submission adds another £200. Lettd sends you advance deadline reminders to help you avoid this.
How much does Lettd cost?
£49 per year. That includes unlimited properties, all four quarterly HMRC submissions, a year-end tax summary, deduction suggestions, and deadline reminders.
Is Lettd on HMRC's recognised software list?
We're currently in the HMRC recognition process. Our API integration is fully built and tested against the HMRC sandbox. Sign up below and we'll email you the moment recognition is confirmed.
Not starting yet? Reserve your spot — we'll email you the moment HMRC recognition is confirmed.
Still have questions?
We're happy to help. Send us a message and we'll get back to you within one business day.
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