Making Tax Digital for landlords: who is in, and when

Tax · 5 min read · Published 1 October 2026 · Updated 2 October 2026

In short: Making Tax Digital for Income Tax (MTD) has applied since 6 April 2026 to landlords and sole traders whose combined gross income from property and self-employment is over £50,000. The threshold drops to £30,000 from April 2027 and £20,000 from April 2028. If you are in, you keep digital records and send HMRC a short update every quarter through approved software, then finish the year with a final declaration. It applies across the UK, including to overseas landlords with UK rental income.

How to tell if you are in

The test uses gross income, not profit. Add up your rent received from property (your share, if you own jointly) and any self-employed turnover. Employment income, pensions and dividends do not count towards the threshold. HMRC looks at the figures on your tax return from two years earlier: the April 2027 group is based on 2025 to 2026 returns, so the income you have already declared decides whether you are in.

A worked example: a landlord with two flats bringing in £1,350 a month between them has £16,200 of gross rent a year. That is below every threshold so far. A landlord with five properties at £700 a month has £42,000, which is under £50,000 today but over £30,000 from April 2027, even if mortgage interest and costs leave a modest profit.

What you actually have to do

1. Keep digital records of rent and expenses, in MTD-compatible software or a spreadsheet linked to bridging software.
2. Send a quarterly update for each income source. Using standard quarters, the deadlines are 7 August, 7 November, 7 February and 7 May.
3. Submit a final declaration by 31 January after the end of the tax year, where you add other income, claim reliefs and confirm the figures.

The quarterly updates are summaries, not tax returns. You do not pay tax quarterly, and the payment dates do not change.

Penalties

MTD uses a points system for late submissions. For the first year, 2026 to 2027, HMRC is not charging penalty points for late quarterly updates. After that, each missed quarterly deadline earns a point, starting with the update due on 7 August 2027, and reaching four points within two years triggers a £200 penalty. Late payment penalties are separate and still apply as normal.

Overseas landlords and joint owners

If you live abroad and let UK property, MTD applies to you in the same way, based on your UK property income. That sits alongside the Non-Resident Landlord Scheme, which deals with tax deducted from rent; the two are separate. For jointly owned property, each owner counts only their own share of the gross rent towards the threshold.

Getting ready without fuss

The landlords who find MTD painless tend to have already done one thing: put every rental payment and expense into one place, monthly, rather than finding receipts in January. If your agent sends a monthly statement with rent, fees and repairs itemised, half the work is done. Ask your accountant which software they support before you choose one, and decide early who is filing the quarterly updates: you, your accountant, or an agent.

This guide is general information, not tax advice. Thresholds, deadlines and penalty rules can change; check the current HMRC guidance on GOV.UK and speak to your accountant about your own position.

Common questions