Making Tax Digital for landlords
Written by Akhtar Rana, FAIA · Last reviewed
Making Tax Digital (MTD) for Income Tax changes how landlords report rental income to HMRC. Instead of one Self Assessment return a year, landlords whose qualifying income is over the threshold must keep digital records and send HMRC a quarterly update, then a final declaration. It starts on 6 April 2026 for landlords with qualifying income over £50,000, with lower thresholds following. Here is who is caught, what changes for property income, and how we take it off your plate.
Figures are correct at the date of review. Always check GOV.UK for the latest.
The short answer
If you are a landlord, Making Tax Digital for Income Tax means keeping your rental records digitally and sending HMRC four updates a year plus a final declaration, instead of one Self Assessment return. It applies from 6 April 2026 if your qualifying income is over £50,000, with lower thresholds following in 2027 and 2028. Landlords are in the first wave, so if your rents are substantial this affects you sooner rather than later.
Who is caught, and when
Whether you are in depends on your qualifying income: your gross income from UK property and any self-employment, added together, before expenses. It is not your profit, and it is not after your mortgage or costs. The rollout is phased:
| From | You are in if your qualifying income is over | Based on your |
|---|---|---|
| 6 April 2026 | £50,000 | 2024 to 2025 tax return |
| 6 April 2027 | £30,000 | 2025 to 2026 tax return |
| 6 April 2028 | £20,000 | 2026 to 2027 tax return |
So a landlord with £40,000 of rents and £15,000 from a side trade has a qualifying income of £55,000, and joins from April 2026, even though neither source alone is over £50,000. HMRC uses the figures on your most recent Self Assessment return to decide when you join.
The quarterly rhythm
Once you are in, you send a cumulative update after each standard quarter. For the standard periods the dates are fixed:
| Quarter | Period covered (to) | Deadline |
|---|---|---|
| Q1 | 6 April to 5 July | 7 August |
| Q2 | 6 April to 5 October | 7 November |
| Q3 | 6 April to 5 January | 7 February |
| Q4 | 6 April to 5 April | 7 May |
After the tax year ends, your final declaration is due by 31 January, the same date as today’s Self Assessment deadline, and any tax you owe is due then too. So your first quarterly update as a landlord in the £50,000 band is due by 7 August 2026.
What is different for property income
The mechanics have a few property-specific points worth knowing:
- Keep digital records for each property. You record the rent and the allowable costs (letting agent fees, repairs, insurance, ground rent and so on) for each property in MTD-compatible software as you go, rather than adding it all up once a year.
- Your UK properties report together. All your UK properties form one UK property business, so the quarterly update is a combined figure, not one submission per property. Foreign property is reported as a separate business.
- Joint ownership: you report your share. If you own a property with a spouse or someone else, each owner keeps records of their share of the rent and costs and files their own updates.
- Finance costs still work the same way. MTD changes how you report, not the tax rules. The Section 24 restriction on mortgage interest still applies, and the 20% credit is handled at the final declaration.
Penalties, and the first-year soft landing
Late quarterly updates fall under HMRC’s points-based penalty system: one point per late submission, and at 4 points a £200 penalty applies, with a further £200 for each later late update. Importantly, 2026/27 is a soft-landing year: HMRC will not issue penalty points for late quarterly updates in that first year. That soft landing does not cover your final declaration or late payment of tax, so those deadlines still count from day one.
How we handle it for you
For the landlords we look after, MTD simply happens. We check whether and when it applies to you, set you up on software that fits a property business, keep your records digital and current, and prepare and file every quarterly update and your final declaration on time, on a fixed monthly fee. You keep collecting the rent; we keep HMRC happy. See our accountants for landlords page for the wider property picture, or the MTD software guide for what runs it.
Want it off your plate? Take our 2-minute quiz or get in touch, and we’ll get you MTD-ready well before 7 August 2026.
Akhtar Rana, FAIA
Akhtar is the founder of Xpert Tax Accountants and a Fellow of the Association of International Accountants, holding an AIA practising certificate. He works with business owners across Greater Manchester and the rest of the UK.
Verify his membership on the AIA register →
Xpert Tax Accountants is regulated by the AIA. We are not authorised by the Financial Conduct Authority and do not give investment, pension or insurance advice.
Xpert Tax Accountants is regulated by the Association of International Accountants. We are not authorised or regulated by the Financial Conduct Authority and we do not give investment, pension or insurance advice, or arrange financial products. Our content is general information about UK tax, not advice for your circumstances, and no responsibility is accepted to any person acting on the basis of it.
MTD for landlords: frequently asked questions
Straight answers on thresholds, joint ownership and quarterly updates.
Do landlords have to use Making Tax Digital?+
Yes, in phases. From 6 April 2026 MTD for Income Tax applies to landlords whose qualifying income is over £50,000, then over £30,000 from April 2027 and over £20,000 from April 2028. Qualifying income is your gross rental income plus any self-employment income, before expenses.
What is the income threshold for landlords?+
It is based on gross income, not profit. Add your total rents before any costs to any self-employment income. If that combined figure is over £50,000 you are in from April 2026, over £30,000 from April 2027, and over £20,000 from April 2028. HMRC uses your prior-year Self Assessment return to decide.
When is my first landlord quarterly update due?+
For the standard quarters the first update covers 6 April to 5 July 2026 and is due by 7 August 2026. The next three are due 7 November, 7 February and 7 May, with a final declaration by 31 January.
I own a property jointly, how does MTD work?+
You report your share. If you own a property with someone else, each owner keeps digital records of their share of the rent and costs and files their own quarterly updates. We set this up so it is straightforward.
Do I report each property separately?+
You keep digital records of the rent and allowable costs for each property, but your UK properties are reported together as one UK property business in each quarterly update. Foreign property is reported separately. The software keeps this tidy for you.
Are there penalties for landlords in the first year?+
2026/27 is a soft-landing year: HMRC will not issue penalty points for late quarterly updates in that first year. The soft landing does not cover your final declaration or late payment of tax, so those still matter from day one.
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