The Renters' Rights Act is live — what contractor landlords need to do before 31 May 2026
Direct Answer
The Renters' Rights Act 2026 is now in effect. Landlords must provide existing tenants with the new information sheet by 31 May 2026 or face fines of up to £7,000. Section 21 'no fault' evictions have been abolished. For contractor-landlords, there is also a tax dimension: rental income is reported separately from your limited company income and must be handled correctly on your Self Assessment.
The 31 May 2026 deadline — act now
The most time-sensitive obligation under the Renters' Rights Act is the information sheet requirement. If you have existing tenants, you must provide them with the government's prescribed information sheet by 31 May 2026. For new tenancies, this must be provided at the point the tenancy begins.
The fine for non-compliance is up to £7,000. Councils have new enforcement powers under the Act and are expected to take a proactive approach, particularly where they have already received complaints from tenants.
The information sheet is available from GOV.UK. If you use a letting agent, check with them — they should be managing this on your behalf. If you self-manage, this is your responsibility.
Key changes under the Renters' Rights Act
Beyond the information sheet, the Act makes several significant changes to how tenancies work:
- Section 21 abolished: You can no longer give a 'no fault' eviction notice. To end a tenancy, you must use Section 8 with a valid legal ground (rent arrears, property needed for personal use, etc.).
- Minimum notice period: Tenants must now be given at least 4 months' notice to vacate, up from 2 months.
- Fixed-term tenancies replaced: All new and existing tenancies become rolling periodic tenancies. You can no longer create a new fixed-term AST.
- Rent increases: Rent can only be increased via a formal Section 13 notice. Tenants have the right to challenge the increase at a tribunal.
- Private Rented Sector Ombudsman: All private landlords must register — this is mandatory, not optional.
- Decent Homes Standard: Now applies to private rented properties. Councils can enforce minimum property standards.
The tax picture for contractor-landlords
Many contractors in IT, finance, and professional services also own buy-to-let properties. Running a limited company alongside a property portfolio means two separate tax positions that interact with each other in important ways.
Personal ownership: If your BTL is held in your own name, rental profits are added to your total income and taxed at your marginal rate. For most contractors, that means the 40% higher rate. Mortgage interest relief has been restricted since 2020 under Section 24 — you now only receive a 20% basic rate credit, regardless of your actual tax rate. This is a significant cost for higher-rate taxpayers.
Company ownership: A limited company can deduct mortgage interest in full, which looks attractive on paper. But transferring existing properties into a company triggers Stamp Duty Land Tax and potentially Capital Gains Tax on the transfer. For most people with existing portfolios, the numbers do not stack up unless you are planning a long hold period.
Rental income must be reported via your personal Self Assessment (SA100), separate from your company's corporation tax return. AutoBooks Gold includes your SA100 as standard — see our pricing page for details.
MTD ITSA: another compliance layer arriving for landlords
From April 2026, landlords with rental income over £50,000 are also required to comply with Making Tax Digital for Income Tax Self Assessment (MTD ITSA). This means quarterly digital reporting to HMRC instead of a single annual return.
If your contracting income and rental income together exceed £50,000, you may already be in scope. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028.
For limited company contractors, your company income is outside MTD ITSA scope — but rental income held personally is in scope. This is an area where getting clear, joined-up advice matters. See our article on MTD ITSA for contractors for more detail.
Running a limited company and a BTL portfolio?
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