Making Tax Digital (MTD) for Income Tax replaces the once-a-year approach with digital records and quarterly updates. It's arriving for landlords in stages.
When it applies
- From April 2026: qualifying income over £50,000.
- From April 2027: over £30,000.
- From April 2028: over £20,000.
Qualifying income is your gross rental income plus any self-employed income. Each joint owner counts their own share.
What you need to do
- Use software compatible with MTD.
- Keep digital records of income and expenses.
- Send HMRC quarterly updates.
- Submit a final declaration after the year end.
Check when it applies to you with the MTD checker, or ask a specialist to set it up.
Frequently asked questions
Is Making Tax Digital based on profit or turnover?
Turnover. It's your gross rental income plus any self-employed income, before expenses.
Do joint owners each count the full rent?
No. Each owner counts their own share of the rental income.
What happens if I don't comply?
Late or missing quarterly updates can lead to penalty points and penalties. Getting set up early is much easier than catching up.
Request a call back
Tell us a little about your situation and we'll call you, usually within one working day, to understand what you need. If it would help, we'll then put you in touch with a landlord tax specialist. We'll always tell you who they are before passing on your details. We don't give advice ourselves, and there's no obligation.