Quick answer
Last checked: 1 October 2026. General information, not tax advice. MTD HQ is independent and not affiliated with HMRC.
If you’re a landlord, Making Tax Digital for Income Tax applies when your rental income before expenses, added to any self-employment income, goes over a threshold. That’s £50,000 now, £30,000 from 6 April 2027 and £20,000 from 6 April 2028. Once you’re in, you keep digital records, send HMRC a short update every three months, and send your yearly tax return through your software.
The part that catches landlords out: HMRC looks at your rent, not your profit. A landlord collecting £2,600 a month is over £30,000 a year, even if mortgage interest and repairs mean they make very little.
Check in 30 seconds: use our free Do I need MTD? checker.
Does MTD apply to you?
HMRC adds up your qualifying income: your gross (before-expenses) income from property and self-employment, taken from an earlier tax return. If it’s over the threshold, you’re in from the April shown (GOV.UK).
| HMRC checks your… | If qualifying income is over | You need MTD from |
|---|---|---|
| 2024/25 tax return | £50,000 | 6 April 2026 |
| 2025/26 tax return | £30,000 | 6 April 2027 |
| 2026/27 tax return | £20,000 | 6 April 2028 |
What counts: rent from UK property and, if you’re UK resident, overseas property. Self-employment income counts too. For property you own with someone else, only your share counts.
What doesn’t count: your salary or wages, pensions, savings interest, dividends and partnership income.
Worked examples
These people are made up, to show how the rules work.
Priya: one flat and a full-time job. Priya earns £40,000 a year from her job and lets a flat for £1,450 a month, which is £17,400 a year. Her salary doesn’t count, so her qualifying income is £17,400. That’s under every threshold, so she doesn’t need MTD yet. If her rent rose above £1,666 a month, she’d be over £20,000 and could be brought in from April 2028.
Dave and Sue: two flats owned jointly. The flats bring in £44,000 a year in total. They own them 50:50, so each has qualifying income of £22,000. That’s under £30,000, so they’re not in from 2027. But it’s over £20,000, so both would need MTD from April 2028 if their 2026/27 figures are similar.
Tom: rent plus a side business. Tom gets £21,000 a year in rent and £12,000 from window cleaning. Together that’s £33,000 on his 2025/26 return, over £30,000. Tom needs MTD from 6 April 2027, even though neither income is over the threshold on its own.
Grace: a portfolio landlord. Grace’s rent was £52,000 on her 2024/25 return. She’s been required to use MTD since 6 April 2026. If she hasn’t signed up, she should act now.
What you’ll need to do
Once you’re in, there are four jobs. None of them change how much tax you pay; they change how and when you report it.
- Use MTD-compatible software. HMRC doesn’t provide its own; you choose from software it recognises, and some options are free. You can also keep records in a spreadsheet and use “bridging” software to send them.
- Keep digital records of your rental income and expenses as you go.
- Send a quarterly update four times a year: a summary of income and expenses. It isn’t a tax return, and no tax is calculated or paid at this point.
- Send your tax return once a year, through your software, by 31 January after the tax year ends. You still file one return a year; it’s just done through MTD software, and it’s where you confirm your final figures and claim any reliefs (GOV.UK).
Deadlines
| Quarter | Covers | Update due by |
|---|---|---|
| 1 | 6 April to 5 July | 7 August |
| 2 | 6 July to 5 October | 7 November |
| 3 | 6 October to 5 January | 7 February |
| 4 | 6 January to 5 April | 7 May |
| Tax return | The whole tax year | 31 January after the tax year ends |
Tax is still paid on the usual Self Assessment dates.
Penalties
MTD uses a points system for late submissions. Each missed deadline earns a point. If you reach 4 points within two years, you get a £200 penalty, and another £200 for each later missed deadline. To clear your points, send your quarterly updates and tax return on time for 12 months and catch up on anything outstanding from the past 24 months (ICAS).
First-year breathing space: HMRC won’t give penalty points for late quarterly updates in the 2026/27 tax year. Points still apply to a late tax return (GOV.UK).
Paying late is separate: 3% of the tax owed if it’s unpaid at day 15, another 3% at day 30, then interest at 10% a year (GOV.UK).
Jointly owned property
For deciding whether you’re in, only your share of the rent counts (GOV.UK). If you own a property 50:50 with a partner, each of you counts half. Each owner who’s over the threshold signs up separately.
Simpler records for joint owners. HMRC lets joint owners take an easier route: one digital entry per category of property income for each quarter, and one entry per category of expense for the whole year, rather than recording every transaction (HMRC digital record-keeping notice). Check your software supports this before you choose it.
Can you get an exemption?
You can apply for an exemption if it isn’t reasonable for you to go digital, for example because of your age, a disability, where you live (such as poor internet) or your religion. You apply to HMRC; it isn’t automatic. See GOV.UK: exemptions from MTD.
Choosing software as a landlord
Look for software that handles property income (not just sole trader sales), lets you split income and costs by property, and suits how many properties you have. We’ll publish an honest comparison of landlord software soon, including free options.
FAQs
Does MTD mean I pay more tax? No. It changes how often you report, not how much you owe.
My letting agent collects the rent. What counts? The full rent before the agent’s fees. Their fees are an expense.
Can my accountant do it for me? Yes. An accountant or agent can keep your records and send updates on your behalf.
I have a job and one rented property. Does my salary count? No. Only property and self-employment income count.
What if my rent drops below the threshold later? You carry on with MTD until your qualifying income has been below the threshold for three tax years in a row. After that you can stop, or keep using it voluntarily (LITRG).
Do holiday lets count? Yes. Since April 2025, furnished holiday lets are taxed as ordinary property income, so their rent counts towards your qualifying income.
What should I do now? Run the MTD checker. If you’re in from 2027, choose software this winter so you’re comfortable with it before April.
MTD HQ is independent and not affiliated with HMRC. This guide is general information, not tax advice. For your own situation, speak to an accountant or tax adviser.