Making Tax Digital for landlords: what you need to do and when

Written by the Quidtrail team · Facts last checked 18 October 2026

The short answer: if your rental income plus any self-employment income was more than £50,000 (before expenses), you should already be using Making Tax Digital (MTD) for Income Tax from 6 April 2026. Above £30,000 you join from 6 April 2027, and above £20,000 from 6 April 2028. You'll keep digital records, send quarterly updates through compatible software, and submit your tax return through that software by 31 January (GOV.UK).

Is Making Tax Digital compulsory for landlords?

Yes, if you meet all of these (GOV.UK):

• you're an individual registered for Self Assessment
• you get income from property, self-employment or both
• your qualifying income is over the threshold for the relevant tax year

Source: GOV.UK.

HMRC says around 1,077,000 more sole traders and landlords will need to join from 6 April 2027 (GOV.UK news, 5 October 2026). Some people are exempt. See MTD exemptions.

Has MTD for landlords been delayed?

No. When we checked on 18 October 2026, it had been mandatory since 6 April 2026 for people over £50,000, and the 2027 and 2028 dates above were still in HMRC's guidance (GOV.UK).

What counts towards the threshold

Qualifying income is your gross income from property and self-employment, meaning the total before expenses, taken from your previous tax return. Employment (PAYE), pensions, dividends and your share of partnership profit don't count (GOV.UK).

Example: £25,000 rent plus £27,000 self-employment income gives £52,000 qualifying income, which is in scope from April 2026 (example from GOV.UK).

Full detail: MTD qualifying income explained.

Landlords with one property

The number of properties doesn't matter. What matters is your qualifying income. One property with £32,000 a year in rent puts you over £30,000, so if that's what your 2025 to 2026 return shows, you need MTD from April 2027. If you co-own it, only your share counts (GOV.UK).

What you have to do

1. Keep digital records

For every item of property income and expense, you record the amount, the date and the category. MTD uses the same categories as Self Assessment (GOV.UK).

• All your UK lets count as one UK property business, so you don't need separate records for each UK property.
• Foreign property needs separate records for each property, but it's reported as one foreign property business. See MTD and foreign property.
• If your UK property turnover is under £90,000, you can use simpler categories. Residential landlords still have to mark which expenses are restricted finance costs, such as mortgage interest.
• Keep digital records for at least 5 years after the 31 January deadline for the tax year.

Do I still need receipts?

Yes. HMRC says you must keep original records or supporting documents (or copies), such as bank statements and invoices, as you do now for Self Assessment. HMRC doesn't receive individual receipts in your quarterly updates, only category totals (GOV.UK: digital records; GOV.UK: quarterly updates).

2. Send quarterly updates

Your software adds up your records into a year-to-date summary each quarter. They're summaries, not tax returns, and you don't make tax adjustments in them. You still send an update even if nothing happened that quarter (GOV.UK). Deadlines are 7 August, 7 November, 7 February and 7 May. See MTD quarterly deadlines.

3. Make year-end adjustments and submit your tax return

After the fourth update, you make any adjustments (for example, disallowable expenses or capital allowances) and add other income, such as a salary or savings interest. Then you submit your tax return through your software by 31 January (GOV.UK: adjust; GOV.UK: tax return). See the MTD year-end tax return.

Special landlord situations

Jointly owned property

Only your share counts towards the threshold, and you only record your share. For joint lets you can keep less detailed records and leave expenses out of your quarterly updates, adding them by resending the fourth update before your tax return (GOV.UK). See MTD for jointly owned property.

Rent-a-Room

Rent-a-Room relief lets you earn up to £7,500 a year tax-free from letting furnished accommodation in your home. The limit is halved if you share the income (GOV.UK). Under MTD you may need to create digital records of Rent-a-Room income. For example, HMRC says you do if you used the relief and also had other UK property income on your last return (GOV.UK).

Property income allowance

If you claimed the £1,000 property income allowance on your last return, you still keep digital records and send quarterly updates, and you claim the allowance in your tax return at the year end (GOV.UK).

Furnished holiday lets

The furnished holiday lettings (FHL) tax regime was abolished from 6 April 2025 for Income Tax. Former FHL income now forms part of your ordinary UK or overseas property business (GOV.UK). For MTD, that means holiday-let income is part of your one UK property business.

Partnerships

Your share of profit from a partnership doesn't count towards qualifying income, and you don't keep MTD digital records for it. You still include it in your tax return. HMRC says partnerships will join MTD "at a later date" (GOV.UK; GOV.UK).

Do I need MTD if I have an accountant?

Yes, if you meet the conditions. Having an accountant doesn't take you out of scope. HMRC says "you, or your agent", can use the software, and an agent can sign you up (GOV.UK; GOV.UK). Agree with your accountant who keeps the records and who sends each update.

Choosing software as a landlord

HMRC doesn't provide software, and it says to choose software before you sign up (GOV.UK). Landlord-specific questions to ask:

• Does it support UK property (and foreign property, if you have it)?
• Can it record your share of a joint let, and different shares for different properties?
• Does it separate residential finance costs?
• Does it file the year-end tax return as well as quarterly updates?
• Can your accountant get access?

Start with HMRC's software finder. See also free MTD software, MTD software costs and spreadsheets and bridging software. Visit Landlord Vision

Penalties

In the 2026 to 2027 tax year, HMRC won't give penalty points for late quarterly updates. Late tax returns still get points. From later years, 4 points means a £200 penalty (GOV.UK). See MTD penalties.

Related: MTD for Income Tax guide · Do I need MTD? · How to sign up · Landlord legal requirements checklist

Last checked against GOV.UK on 18 October 2026. Not tax advice.