Do landlords have to use Making Tax Digital?
Making Tax Digital (MTD) for Income Tax requires landlords and sole traders to keep digital records and send HMRC quarterly updates through compatible software. It started on 6 April 2026 for people with combined property and self-employment income over £50,000, falls to £30,000 from April 2027 and £20,000 from April 2028.
Read more in our guide: When a portfolio becomes a burden
MTD for Income Tax timetable
| From | Who must join |
|---|---|
| 6 April 2026 | Qualifying income over £50,000 (based on 2024-25 return) |
| 6 April 2027 | Qualifying income over £30,000 |
| 6 April 2028 | Qualifying income over £20,000 |
| Qualifying income | Gross rents plus self-employment turnover, before expenses |
| Quarterly updates due | 7 Aug, 7 Nov, 7 Feb and 7 May |
| Final declaration | 31 January after the tax year |
What changes
Instead of one Self Assessment return a year, landlords in MTD keep their income and expense records in software and send a summary to HMRC every quarter. The year is finalised with a final declaration by 31 January, where reliefs, other income and adjustments are added. Quarterly updates do not mean quarterly tax payments; payment dates stay the same.
Working out the threshold
The test uses gross income, not profit. A landlord with £48,000 of rent and £8,000 of self-employed turnover has £56,000 of qualifying income and is in from April 2026, even if profits are small. Employment income, pensions and dividends do not count. Joint owners each count only their own share of the rent, so a couple splitting £70,000 of rent equally are each at £35,000 and join from April 2027.
Who is not affected
- Properties held in a limited company, which pays Corporation Tax.
- Trusts and estates, for now.
- Landlords below the threshold, who stay on the normal return.
MTD and selling up
For some older landlords, quarterly digital reporting is one more reason to simplify. Selling part of a portfolio can bring income below the threshold; a full exit takes you out of MTD altogether once the property income stops. Capital gains are still reported separately, within 60 days of completion; see CGT 60-day reporting.
Official Sources and Further Reading
General information for landlords in England, checked against official sources in October 2026. It is not tax, legal or financial advice: speak to a qualified accountant or solicitor about your own circumstances.
Frequently Asked Questions
Making Tax Digital (MTD) for Income Tax requires landlords and sole traders to keep digital records and send HMRC quarterly updates through compatible software. It started on 6 April 2026 for people with combined property and self-employment income over £50,000, falls to £30,000 from April 2027 and £20,000 from April 2028.
Yes. Agents can keep the records and send the quarterly updates using their software.
HMRC can grant an exemption where it is not reasonably practical to use software, for example because of age, disability or location.
MTD uses a points-based system for late submissions, with a financial penalty once the points threshold is reached, plus separate late payment penalties.
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