Does Making Tax Digital Apply to Landlords?
MTD for Income Tax applies to landlords whose total qualifying income — property income plus any self-employment income — exceeds the threshold. From April 2026, the threshold is £50,000. It falls to £30,000 in April 2027 and £20,000 in April 2028. Income below these thresholds is not currently subject to MTD for Income Tax, though this may change.
What Landlords Need to Do for MTD
- Check whether your qualifying income exceeds the MTD threshold.
- Choose and set up MTD-compatible software approved by HMRC.
- Register for MTD for Income Tax through your Government Gateway account.
- Keep digital records of all property income and allowable expenses.
- Submit quarterly updates by each HMRC deadline.
- Submit a final declaration at year end instead of the traditional Self Assessment return.
MTD for Landlords with Multiple Properties
If you own multiple rental properties, all income and expenses from your UK property business are combined for MTD purposes. You report them as a single property income source. Each property’s income and expenses should be recorded separately in your MTD software and then aggregated.
MTD Software for Landlords
HMRC publishes a list of recognised software compatible with MTD for Income Tax. Some platforms offer specific landlord modules that handle property income categories and mortgage interest restrictions automatically.