Making Tax Digital for landlords: what changes and what to do

Checked against GOV.UK · Updated 27 October 2026

Making Tax Digital (MTD) for Income Tax means landlords must keep digital records of rental income and expenses and send HMRC a summary every three months, if their qualifying income is over the threshold. It started on 6 April 2026 for those over £50,000, and the threshold falls to £30,000 in April 2027 and £20,000 in April 2028. You still file one tax return and pay by 31 January, but you do it through software.

Which landlords need to use it, and when

You need MTD for Income Tax if you are registered for Self Assessment, you get property income, self-employment income or both, and your qualifying income is over the threshold for the relevant year.

Over £50,000 in 2024 to 2025: start from 6 April 2026
Over £30,000 in 2025 to 2026: start from 6 April 2027
Over £20,000 in 2026 to 2027: start from 6 April 2028

HMRC checks your tax return each year and writes to you if you are over. If no letter arrives, it is still your job to check. Qualifying income of £20,000 or less is automatically exempt. Our free MTD checker gives you a likely start date in a minute.

How qualifying income works for landlords

Qualifying income is your income before expenses, also called turnover, not your profit. Example: £34,000 of rent with £14,000 of costs counts as £34,000, so on 2025 to 2026 figures you would start in April 2027.

If you are also a sole trader, the two are added together. HMRC's own example is £25,000 of rent plus £27,000 of self-employment income, giving £52,000. Wages, dividends, pensions and your share of partnership profit do not count. See what counts as qualifying income.

For a jointly owned property, only your share counts. HMRC's example is a property bringing in £50,000 shared equally with a sibling, which gives each owner £25,000. If you are only told your share after expenses have been taken off, HMRC uses that figure.

If your property income covers less than 12 months, you must annualise it yourself. HMRC's qualifying income guidance does not mention Rent-a-Room income specifically.

UK and foreign property

All your UK lettings count as one 'UK property business', including your share of jointly let property and, from April 2025, furnished holiday lets. They go into one quarterly update. Letting out another UK property is not a new income source.

All your overseas lettings form one separate 'foreign property business'. You keep separate digital records for each foreign property, but your software combines them into one update.

If you were UK resident in 2024 to 2025, foreign rental income counts towards qualifying income. If you were not, only UK property income and self-employment income declared on your UK return count. If your 2024 to 2025 return included the SA109 residence pages, you are automatically exempt for 2026 to 2027, but you will need MTD from 2027 to 2028 if your qualifying income is over £30,000. More on MTD exemptions.

What goes in a quarterly update

A quarterly update is a set of category totals for the tax year so far. HMRC does not see individual receipts, and you do not make tax adjustments at this stage. You must still send an update if nothing happened in the period.

For UK property, the income categories are total rent, other income from property, premiums for the grant of a lease, and reverse premiums and inducements. Expense categories include rent, rates, insurance and ground rents; repairs and maintenance; residential and non-residential finance costs; legal, management and other professional fees; costs of services, including wages; travel; and other allowable expenses.

Foreign property uses fewer categories: total rents and other receipts, lease premiums, and one allowable expenses total.

If your UK property turnover is under £90,000, you can simply mark each item as income or expense. Residential landlords must still record finance costs separately. Deadlines are 7 August, 7 November, 7 February and 7 May: see quarterly update deadlines.

Mortgage interest and other finance costs

Since 6 April 2020, Income Tax relief on residential finance costs, such as mortgage interest, has been restricted to the basic rate. MTD does not change that rule, but it keeps these costs in their own category, apart from non-residential finance costs.

For a mortgage payment, you can record just the interest or the full payment. If you record the full payment, you must adjust it before finalising your return, because only the interest part is an allowable cost.

Jointly owned property: the easements

If you let property jointly, you only record your share of the income and expenses. You do not need to link your records to your co-owner's. HMRC offers two easements, and you can use either or both.

Less detailed records: one record per income category for each update period, and one record per expense category for the whole tax year. HMRC's example: instead of three £1,000 rent entries, one £3,000 entry for the quarter.
Income only in updates: leave joint property expenses out of your quarterly updates, then add them before your return by resending the fourth update or adjusting the category totals.

Properties you own outright still need income and expenses in every update.

Rent-a-Room income

Rent-a-Room relief covers up to £7,500 a year from letting furnished rooms in your home, halved if the income is shared. If your last return showed Rent-a-Room income alongside other UK property income, or Rent-a-Room income above the threshold with no other UK property income, you record that income digitally and the relief is applied automatically.

If you decide to claim the relief after the tax year ends, you resend your fourth quarterly update.

Penalties

If you had to start in April 2026, there are no penalty points for late quarterly updates in 2026 to 2027, but late returns still earn points. From 2027 to 2028, each missed deadline earns a point, and 4 points brings a £200 penalty, plus £200 for every further miss. Late payment penalties are separate. Details are in our MTD penalties guide.

Software, sign-up and help

HMRC does not provide software. Use its software finder, which lists products that have been through HMRC's recognition process, and choose before you sign up. Spreadsheets are allowed if you link them to bridging software: see spreadsheets and bridging software.

You can do all of this yourself or hand it to an agent. See how to sign up and whether you need an accountant.

Keeping the records with Snapfile

Snapfile lets you send rent receipts, invoices and bills to a WhatsApp number. It records each one, sorts it into the Self Assessment expense categories, tracks the tax year and quarter, sends deadline reminders and exports a CSV. It does not submit anything to HMRC, so you still need software from HMRC's finder for your updates and return. It is free during early access.

Common questions

What does Making Tax Digital for landlords mean?

It means landlords over the income threshold keep digital records of rental income and expenses in software, send HMRC category totals every three months, and file their tax return through that software. The tax you pay and the 31 January payment deadline stay the same.

Do landlords have to go digital?

Only if you are registered for Self Assessment and your qualifying income from property and self-employment is over the threshold: £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028. Qualifying income of £20,000 or less is exempt, and you can apply for an exemption if you are digitally excluded.

How is tax changing for landlords in 2026?

From 6 April 2026, landlords with qualifying income over £50,000 in 2024 to 2025 must use MTD for Income Tax, with new points-based penalties. HMRC says MTD does not change the way you pay tax or the dates payments are due.

Do jointly owned properties count towards the MTD threshold?

Yes, but only your share. HMRC's example is a £50,000 property split equally, which gives each owner £25,000 of qualifying income.

Do I need an accountant for Making Tax Digital?

No. HMRC says you, or an agent if you have one, can do it, and many landlords use software themselves. An accountant can be worth it for year-end adjustments or complex affairs.

Check where you stand in a minute

Our free Making Tax Digital checker tells you whether and when MTD for Income Tax applies to you. Nothing you type leaves your browser.