Making Tax Digital (MTD) for Income Tax is now live. Landlords above the qualifying income threshold must keep digital records, send quarterly updates and submit an annual tax return using compatible software.
It is based on gross property and self-employment income combined — not rental profit. Find out when the rules apply to you.
Making Tax Digital for landlords is HMRC's new digital reporting system for individuals with qualifying rental and/or self-employment income. It does not mean paying Income Tax four times a year. It means keeping digital records, reporting income and expenses quarterly, and completing a tax return after the tax year ends.
Enter your gross annual rental receipts and self-employment turnover before expenses for the relevant tax year. If your income has changed between years, check each year's figures separately.
Indicative only. Assumes the same qualifying income in each reference year, individual ownership and no exemption. The actual start date depends on HMRC's reference-year figures and your circumstances. Partnership income, company income, salary and dividends are not normally included in this qualifying income calculation.
| MTD start date | Qualifying income | HMRC reference tax year |
|---|---|---|
| 6 April 2026 | Over £50,000 | 2024/25 |
| 6 April 2027 | Over £30,000 | 2025/26 |
| 6 April 2028 | Over £20,000 | 2026/27 |
These are strictly more than thresholds: £50,000 exactly does not exceed £50,000. The figures apply to the combined gross qualifying income of an individual, not to each property separately.
Gross rents and no other qualifying income: potentially in scope from April 2028.
Gross rents plus self-employment: potentially in scope from April 2027.
Combined qualifying income: potentially in scope from April 2026.
Broadly, add together your gross UK and overseas property income and gross self-employment income within HMRC's qualifying-income rules. Do this before deducting mortgage interest, agent fees, repairs, insurance or other expenses. Qualifying income is not the same as taxable rental profit.
Employment salary, pension income, dividends and rental income received by a limited company are not generally counted towards an individual's MTD qualifying-income threshold. Taxable income from these sources may still need to appear on the annual tax return.
For standard tax-year update periods, the reports are cumulative from 6 April. Landlords using calendar update periods can use a 1 April to 31 March basis. Both options share the same deadlines.
| Standard period covered | Calendar period covered | Submission deadline |
|---|---|---|
| 6 April – 5 July | 1 April – 30 June | 7 August |
| 6 April – 5 October | 1 April – 30 September | 7 November |
| 6 April – 5 January | 1 April – 31 December | 7 February |
| 6 April – 5 April | 1 April – 31 March | 7 May (following tax year) |
2026/27 example: quarterly deadlines are 7 August 2026, 7 November 2026, 7 February 2027 and 7 May 2027. The annual return and balancing payment are due by 31 January 2028.
For 2026/27, HMRC will not issue late quarterly-update penalty points, but digital records and updates are still required and late annual returns or payments can still attract penalties. Later years use a points-based late submission system.
See our MTD quarterly updates guide for more information.
Joint landlords: assess each owner's own share of gross property income, together with their own self-employment income. Do not automatically apply the whole property's rent to each joint owner. The tax treatment of ownership shares can vary, particularly for married couples and civil partners.
HMRC permits a simplified approach to quarterly reporting for jointly let properties: you may report property income only during the year and report relevant expenses later through the required update process before submitting the annual tax return. This does not remove the need to account for the expenses correctly.
Several properties: your income is aggregated for the threshold. You do not ordinarily send a separate UK property business update for every individual rental property. UK and overseas property businesses may need separate reporting.
Limited company landlords: MTD for Income Tax is aimed at individuals, not rental profits earned by a limited company. Companies have their own Corporation Tax obligations. Read our property rental business guide.
Rent received, dates, property or tenant reference, and other property-business receipts where applicable.
Letting agent fees, repairs, insurance, service charges, utilities and other potentially allowable expenses.
Bank statements, invoices, receipts and records of finance costs, ownership shares and tax adjustments.
Not every payment is deductible. Capital improvements, residential mortgage finance costs and private-use elements may need different tax treatment. The software should allow appropriate year-end adjustments.
Potentially. You may be able to maintain digital records in a spreadsheet and use compatible bridging software, provided the overall system meets HMRC's digital-record and submission requirements. A spreadsheet emailed to HMRC, or a PDF of handwritten records, is not itself an MTD quarterly submission.
Compare software on landlord-specific expense categories, bank feeds, joint-property handling, overseas income, year-end adjustments, tax-return filing, price and support. Our guides to QuickBooks, Xero and FreeAgent provide further background; verify current MTD for Income Tax functionality before choosing a package.
Does MTD apply if I have only one rental property?
Yes, potentially. The number of properties is not the deciding factor; qualifying income and other eligibility conditions are.
Is the threshold based on rental income or profit?
Broadly, gross qualifying property and self-employment income before expenses, not profit.
Do I pay tax quarterly under MTD?
No. Quarterly updates report income and expenses. The usual annual payment deadlines continue to apply, including payments on account where relevant.
Does MTD apply to furnished holiday lets?
Property income can fall within the MTD rules, but the tax treatment of short-term lets depends on the circumstances. The former furnished holiday lettings tax regime was abolished from April 2025 for Income Tax. Check the current treatment of your letting activity.
Can an accountant send my quarterly updates?
Yes. An authorised agent can help manage your digital records, quarterly updates and annual return using suitable software.
Can I be exempt from MTD?
Some individuals qualify for exemptions, including certain digitally excluded taxpayers. Exemption is not automatic merely because you dislike computers or have limited experience; check HMRC's criteria and application process.
What if I also have a full-time job?
Employment salary does not generally count towards the MTD qualifying-income threshold, although it may need to be included in your annual tax return.
□ Check the relevant tax year's gross rental receipts and self-employment turnover.
□ Confirm your ownership shares and any overseas rental income.
□ Review whether HMRC has signed you up or whether you need to act.
□ Choose compatible MTD for Income Tax software.
□ Set up digital income and expense categories and retain evidence.
□ Agree who will submit quarterly updates and the annual return.
□ Calendar the quarterly deadlines and the 31 January annual deadline.
The Online Accountants supports UK landlords with digital record keeping, Self Assessment and tax reporting. Speak to our ACCA-qualified team about your property portfolio and your MTD start date.
Contact The Online Accountants →Guidance updated 28 October 2026. General information only; rules, exemptions and software functionality should be checked against your circumstances.